HF Sinclair Corp (DINO)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| 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 | 1.79 | 1.74 | 1.96 | 2.27 | 2.23 |
HF Sinclair Corp's solvency ratios indicate a strong financial position with consistent low debt levels relative to its assets, capital, and equity. The Debt-to-Assets, Debt-to-Capital, and Debt-to-Equity ratios have all been consistently at 0.00 over the five-year period from 2020 to 2024, signaling that the company has no debt obligations in relation to its assets or capital structure.
The Financial Leverage ratio, which measures the company's reliance on debt financing, has decreased steadily from 2.23 in 2020 to 1.79 in 2024. This declining trend suggests that the company has been reducing its financial leverage over the years, potentially by paying off debt or increasing equity.
Overall, the solvency ratios indicate that HF Sinclair Corp has a very conservative capital structure with minimal debt levels, which could contribute to its financial stability and ability to weather economic downturns or financial challenges.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.32 | 12.29 | 23.39 | 7.38 | -4.94 |
The interest coverage ratio of HF Sinclair Corp has been volatile over the past five years, indicating fluctuations in the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
In December 31, 2020, the interest coverage ratio was negative at -4.94, suggesting that the company's EBIT was insufficient to cover its interest expenses, signaling a potential financial risk.
By December 31, 2021, the interest coverage ratio improved to 7.38, indicating that the company's earnings were more capable of covering its interest obligations. This improvement may suggest better operational efficiency or increased profitability.
The year 2022 saw a significant increase in the interest coverage ratio to 23.39, reflecting a strong ability to meet interest payments comfortably. This could be attributed to increased EBIT or lower interest expenses, portraying a healthier financial position.
However, in December 31, 2023, the interest coverage ratio dropped to 12.29, indicating a decrease in the company's ability to cover its interest costs compared to the previous year. This decline may warrant further investigation into the company's financial performance and management of debt.
Lastly, by December 31, 2024, the interest coverage ratio fell significantly to 2.32, reaching a relatively low level. This decline could raise concerns about the company's financial health and its capacity to service its debt obligations using its current earnings.
Overall, the trend in HF Sinclair Corp's interest coverage ratio indicates varying levels of financial risk and operational efficiency over the five-year period, highlighting the importance of monitoring this ratio to assess the company's ability to manage its debt and interest obligations effectively.