Dupont De Nemours Inc (DD)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.59 | 1.56 | 1.73 | 1.84 | 1.69 |
The solvency ratios of DuPont de Nemours Inc have shown a generally improving trend over the years based on the data provided.
The Debt-to-assets ratio has remained relatively stable around 0.20 in 2022 and 2023, indicating that the company has been able to maintain a low level of debt relative to its total assets. This suggests a lower financial risk as a lower ratio indicates a smaller proportion of the company's assets are financed by debt.
The Debt-to-capital ratio has also shown improvement, decreasing from 0.36 in 2020 to 0.24 in 2023. This signifies that the proportion of the company's capital that is funded by debt has decreased, indicating a healthier capital structure.
The Debt-to-equity ratio has shown a declining trend from 0.57 in 2020 to 0.32 in 2023. This indicates that the company has reduced its reliance on debt financing compared to equity over the years, which is a positive sign for investors and creditors as it indicates a lower financial risk.
The Financial leverage ratio has also shown improvement, declining from 1.84 in 2020 to 1.59 in 2023. This indicates that the company's reliance on debt to finance its operations has decreased over the years, which could lead to lower interest payments and financial risk.
Overall, the solvency ratios of DuPont de Nemours Inc demonstrate a positive trend towards a healthier financial position, with lower debt levels relative to assets, capital, and equity, as well as reduced financial leverage. This trend suggests that the company has been effective in managing its debt and maintaining a strong solvency position over the years.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -5.51 | 10.01 | 9.79 | — | — |
DuPont de Nemours Inc's interest coverage has shown variability over the past five years. The interest coverage ratio measures a company's ability to meet interest obligations on its debt, with a higher ratio indicating a stronger ability to cover interest expenses.
In this case, DuPont de Nemours Inc's interest coverage ratio has generally improved since 2020, with a notable increase from 2.45 in 2020 to 7.34 in 2023. This trend suggests that the company's ability to cover interest payments from its earnings has strengthened over the years.
A high interest coverage ratio indicates that DuPont de Nemours Inc is generating sufficient earnings to comfortably meet its interest payments. This can be viewed positively by creditors and investors as it reflects the company's financial stability and lower risk of defaulting on debt obligations.
However, it is important to continue monitoring this ratio to ensure that DuPont de Nemours Inc maintains a healthy level of interest coverage to withstand potential fluctuations in earnings or interest expenses.