Dow Inc (DOW)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.24 | 0.23 | 0.20 | 0.20 | 0.24 | 0.27 | 0.27 | 0.30 | 0.32 | 0.34 | 0.33 | 0.32 | 0.29 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.41 | 0.40 | 0.39 | 0.40 | 0.45 | 0.49 | 0.51 | 0.55 | 0.58 | 0.62 | 0.61 | 0.60 | 0.58 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.71 | 0.67 | 0.64 | 0.67 | 0.81 | 0.94 | 1.03 | 1.20 | 1.38 | 1.66 | 1.59 | 1.52 | 1.37 |
| Financial leverage ratio | 3.30 | 3.24 | 3.19 | 3.19 | 3.12 | 2.98 | 2.92 | 2.94 | 2.93 | 3.29 | 3.28 | 3.35 | 3.47 | 3.76 | 3.97 | 4.32 | 4.94 | 4.85 | 4.73 | 4.70 |
The solvency ratios of Dow Inc indicate the company's ability to meet its long-term financial obligations. The Debt-to-assets ratio, which measures the proportion of the company's assets financed by debt, has shown a decreasing trend from 0.29 in March 2020 to 0.00 by June 2024, signifying a reduction in reliance on debt for asset financing.
Similarly, the Debt-to-capital ratio, reflecting the percentage of the company's capital structure financed by debt, has decreased steadily from 0.58 in March 2020 to 0.00 by June 2023, indicating a shift towards a more equity-financed capital structure.
The Debt-to-equity ratio, comparing the company's debt to equity, has shown a significant decline from 1.37 in March 2020 to 0.00 by June 2024, reflecting a decreasing reliance on debt relative to equity for funding the company's operations.
Additionally, the Financial leverage ratio, which measures the extent to which the company uses debt in its capital structure, has decreased steadily from 4.70 in March 2020 to 3.30 by December 2024, suggesting a reduction in financial risk and leverage over the period under review.
Overall, the solvency ratios of Dow Inc demonstrate a positive trend towards a healthier financial position characterized by reduced debt levels, increased equity financing, and a lower reliance on debt for capital funding, enhancing the company's long-term financial stability and ability to meet its obligations.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.59 | 2.06 | 2.16 | 2.30 | 1.67 | 3.17 | 4.03 | 5.93 | 8.97 | 10.74 | 12.09 | 12.17 | 10.85 | 10.04 | 7.29 | 4.29 | 3.21 | -1.11 | -0.63 | -0.19 |
The interest coverage ratio of Dow Inc has shown a significant improvement over the period from March 31, 2020, to December 31, 2024. During this time frame, the company's interest coverage ratio has increased from being negative in 2020 to reaching a peak of 12.17 in March 31, 2022, indicating a strong ability to cover its interest expenses from its operating income.
The improved interest coverage ratio suggests that Dow Inc has been more effective in generating earnings to cover its interest obligations. It indicates that the company's operating profits were able to cover its interest payments comfortably, reducing the financial risk associated with debt repayment.
However, it is worth noting that there has been some fluctuation in Dow Inc's interest coverage ratio after reaching its peak in March 31, 2022. The ratio has decreased slightly but still remains relatively healthy, indicating that the company continues to generate sufficient earnings to meet its interest obligations.
Overall, the trend in Dow Inc's interest coverage ratio reflects a positive financial performance, with the company demonstrating improved financial stability and liquidity to cover its interest expenses.