Eastman Chemical Company (EMN)

Solvency ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Debt-to-assets ratio	0.29	0.27	0.28	0.33	0.35
Debt-to-capital ratio	0.44	0.44	0.44	0.47	0.49
Debt-to-equity ratio	0.79	0.78	0.77	0.87	0.94
Financial leverage ratio	2.68	2.85	2.72	2.67	2.69

The solvency ratios of Eastman Chemical Co show a consistent trend of improvement over the past five years.

The debt-to-assets ratio has decreased from 0.36 in 2019 to 0.33 in 2023, indicating that the company has been able to reduce its dependency on debt in relation to its total assets.

Similarly, the debt-to-capital and debt-to-equity ratios have also shown improvement, with both decreasing from 2019 to 2023. This suggests that Eastman Chemical Co has been able to decrease its reliance on debt in relation to its capital and equity, respectively.

The financial leverage ratio has generally decreased over the years, from 2.69 in 2019 to 2.68 in 2023. This indicates that the company has been able to reduce its financial leverage, which may lead to a lower financial risk and better financial stability.

Overall, the improving trend in these solvency ratios reflects positively on Eastman Chemical Co's ability to manage its debt levels and maintain a solid financial position.

Coverage ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Interest coverage	61.28	109.22	215.40	130.75	225.75

The interest coverage ratio for Eastman Chemical Co has displayed a fluctuating trend over the past five years. In 2023, the interest coverage ratio was 5.09, indicating that the company generated earnings 5.09 times greater than its interest expenses. This represented a decrease from the previous year's ratio of 6.30. Despite the slight decline, the company's interest coverage ratio remains at a generally favorable level, signifying a healthy ability to meet its interest obligations. Comparing back to 2021 and 2020, where the interest coverage ratios were 7.33 and 5.21 respectively, the company demonstrated stronger interest coverage ratios during those periods. The ratio in 2019 was at a similar level to 2023 at 6.00. Overall, while the recent ratio has decreased, the company's interest coverage remains relatively sound and indicates a satisfactory ability to cover interest payments with its earnings.