Eastman Chemical Company (EMN)

Eastman Chemical Company consistently demonstrates a very strong solvency position based on its solvency ratios. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been consistently at 0.00 over the five-year period from 2020 to 2024. This indicates that Eastman Chemical Company has not relied heavily on debt to finance its operations and investments, and its assets and equity substantially exceed its debt levels.

Additionally, the financial leverage ratio has been relatively stable over the same period, ranging between 2.63 and 2.85. This ratio reflects the proportion of the company's assets that are financed by debt compared to equity. Despite some minor fluctuations, the financial leverage ratio remains at a moderate level, indicating a balanced capital structure.

Overall, based on the solvency ratios provided, Eastman Chemical Company appears to have a strong financial position with minimal reliance on debt for its operations and investments, which enhances its long-term financial stability and resilience.

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Coverage ratios

The interest coverage ratio for Eastman Chemical Company has varied over the years based on the provided data. As of December 31, 2020, the interest coverage ratio was 4.61, indicating that the company generated operating income 4.61 times greater than the interest expenses incurred during that period.

By December 31, 2021, the interest coverage ratio improved significantly to 9.49, showing that the company's ability to cover its interest payments more than doubled compared to the previous year. This indicates a strong financial position and the capacity to meet interest obligations comfortably.

However, in the following years, the interest coverage ratio fluctuated. By December 31, 2022, it decreased to 6.89, before dropping further to 4.57 by December 31, 2023. This downward trend may suggest a slight weakening in Eastman Chemical Company's ability to cover its interest expenses with operating income.

Nevertheless, by December 31, 2024, the interest coverage ratio improved to 6.47, indicating a recovery in the company's ability to meet its interest payment obligations. Overall, Eastman Chemical Company showcases varying levels of interest coverage over the years, with fluctuations that may warrant further analysis to understand the underlying factors influencing the company's financial performance.