HF Sinclair Corp (DINO)

Solvency ratios provide insights into a company's ability to meet its long-term obligations by examining its debt levels in relation to its assets, capital, and equity.

1. Debt-to-assets ratio: This ratio indicates the proportion of a company's assets financed by debt. HF Sinclair Corp. has maintained a relatively stable debt-to-assets ratio over the past eight quarters, averaging around 0.18. This suggests that, on average, 18% of the company's assets are funded through debt.

2. Debt-to-capital ratio: This ratio measures the extent to which a company's operations are financed through debt relative to its total capital (debt + equity). HF Sinclair Corp.'s debt-to-capital ratio has also exhibited stability, hovering around 0.26 on average over the past two years. This implies that debt constitutes approximately 26% of the company's total capital.

3. Debt-to-equity ratio: The debt-to-equity ratio shows the proportion of a company's financing that comes from debt relative to equity. HF Sinclair Corp.'s trend in this ratio reveals a gradual increase over the periods, averaging around 0.34. This indicates that debt accounts for approximately 34% of the company's equity financing.

4. Financial leverage ratio: The financial leverage ratio provides a comprehensive view of a company's financial structure by considering its total assets in relation to equity. HF Sinclair Corp.'s financial leverage ratio has shown a gradual upward trend, averaging around 2.00 over the past eight quarters. This suggests that the company has been increasingly relying on debt to finance its assets, with a leverage of 2.00 implying that the company's assets are financed twice as much by debt in comparison to equity.

In conclusion, HF Sinclair Corp. has maintained relatively stable debt-to-assets and debt-to-capital ratios, while experiencing a gradual increase in the debt-to-equity and financial leverage ratios. Monitoring these solvency ratios helps assess the company's financial risk and its ability to service its debt obligations over the long term.

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Coverage ratios

HF Sinclair Corp.'s interest coverage ratio has shown a generally positive trend over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.

From Q1 2022 to Q4 2023, the interest coverage ratio has increased steadily from 7.29 to 22.81, indicating a significant improvement in HF Sinclair Corp.'s ability to cover its interest payments. This upward trend suggests that the company's operating income has been consistently strong enough to cover its interest expenses over the period.

The interest coverage ratio peaked in Q1 2023 at 31.47, reflecting the highest level of ability to pay interest charges during the analyzed period. This demonstrates that HF Sinclair Corp. had robust profitability relative to its interest costs in that quarter.

Overall, the trend in HF Sinclair Corp.'s interest coverage ratio indicates a positive financial performance, with a consistent improvement in the company's ability to meet its interest obligations with its operating income.