DT Midstream Inc (DTM)

Based on the provided data, DT Midstream Inc has consistently maintained a strong solvency position over the years, as evidenced by the following key solvency ratios:

1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets financed by debt. DT Midstream Inc has a debt-to-assets ratio of 0.00 for each year from 2020 to 2024. This indicates that the company has not relied on debt to finance its assets and has a strong asset base relative to its debt obligations.

2. Debt-to-capital ratio: The debt-to-capital ratio reflects the percentage of a company's capital that is financed by debt. DT Midstream Inc also shows a debt-to-capital ratio of 0.00 for all the years, indicating that the company's capital structure is not significantly leveraged with debt.

3. Debt-to-equity ratio: This ratio compares a company's total debt to its shareholders' equity, showing the amount of debt for each dollar of equity. Similar to the other ratios, DT Midstream Inc maintains a debt-to-equity ratio of 0.00 across the years, indicating a minimal level of debt relative to equity.

4. Financial leverage ratio: The financial leverage ratio measures the extent to which a company uses debt to finance its operations. DT Midstream Inc's financial leverage ratio has remained relatively stable, ranging from 2.05 in 2020 to 2.20 in 2022, and then declining slightly to 2.15 in 2024. This indicates that the company has a moderate level of financial leverage, with debt contributing to a portion of its capital structure while still maintaining a solid financial position.

In summary, DT Midstream Inc demonstrates strong solvency and financial stability, as evidenced by its low debt ratios and reasonable financial leverage. The company's ability to manage its debt levels effectively and maintain a healthy balance between debt and equity bodes well for its overall financial health and risk management.

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Coverage ratios

The interest coverage ratio of DT Midstream Inc has shown a consistent trend over the past five years. It decreased slightly from 4.89 in December 2020 to 4.77 in December 2021 and continued to decline to 4.52 by December 2022. The ratio saw a further decrease to 4.33 by December 2023, with a marginal decline to 4.29 by December 2024.

Despite the gradual decrease in the interest coverage ratio, DT Midstream Inc has maintained a level above 1, indicating that the company's operating income continues to sufficiently cover its interest expenses. However, the decreasing trend may suggest that the company's ability to cover interest payments with operating income has weakened over the years. It would be important for stakeholders to monitor this trend closely to ensure that the company's financial health remains robust and sustainable in the long term.