Eastman Chemical Company (EMN)
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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.63 | 2.66 | 2.66 | 2.66 | 2.68 | 2.73 | 2.80 | 2.89 | 2.85 | 2.78 | 2.79 | 2.68 | 2.72 | 2.66 | 2.71 | 2.60 | 2.67 | 2.64 | 2.65 | 2.69 |
The solvency ratios for Eastman Chemical Company show a consistently low level of debt relative to its assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 throughout the reported periods, indicating that the company operates with minimal financial leverage and has a strong financial position with little reliance on debt.
The Financial Leverage Ratio, which measures the proportion of a company's assets that are financed by debt, has remained relatively stable around 2.60 to 2.90 during the reporting periods. This indicates that Eastman Chemical Company has been maintaining a moderate level of financial leverage, which has not significantly increased over time.
Overall, the solvency ratios suggest that Eastman Chemical Company has a conservative debt structure and a strong financial standing, which may provide the company with financial stability and flexibility to support its operations and future growth initiatives.
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 | 6.22 | 5.44 | 5.05 | 4.80 | 4.77 | 4.80 | 5.46 | 6.49 | 7.06 | 9.37 | 9.62 | 6.60 | 6.75 | 4.15 | 3.17 | 4.32 | 4.27 | 4.53 | 5.10 | 6.00 |
The interest coverage ratio of Eastman Chemical Company has shown fluctuations over the periods indicated in the data provided. The interest coverage ratio measures the company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting interest obligations.
From March 31, 2020, to June 30, 2021, the interest coverage ratio declined steadily from 6.00 to 3.17, indicating a potential strain on the company's ability to cover its interest costs with its operating earnings. This trend could raise concerns about the company's financial health and ability to service its debt.
However, from June 30, 2021, onward, there was an improvement in the interest coverage ratio, reaching a peak of 9.62 on June 30, 2022. This significant improvement suggests that the company's operating earnings were more than sufficient to cover its interest expenses during this period.
Subsequently, the interest coverage ratio declined but remained relatively stable between September 30, 2022, and December 31, 2024, ranging from 4.77 to 6.22. Although the ratio decreased from its peak, it remained at levels that indicate the company's ability to comfortably meet its interest obligations.
Overall, the trend in Eastman Chemical Company's interest coverage ratio reflects both periods of improvement and periods of decline. It is important for investors and stakeholders to monitor this ratio closely to assess the company's ability to manage its debt levels and interest payments effectively.