Eastman Chemical Company (EMN)

Solvency ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Debt-to-assets ratio 0.29 0.31 0.31 0.31 0.27 0.27 0.27 0.28 0.28 0.27 0.32 0.32 0.33 0.34 0.34 0.33 0.35 0.34 0.35 0.34
Debt-to-capital ratio 0.44 0.46 0.47 0.47 0.44 0.42 0.43 0.43 0.44 0.42 0.47 0.45 0.47 0.47 0.47 0.47 0.49 0.48 0.49 0.49
Debt-to-equity ratio 0.79 0.86 0.87 0.89 0.78 0.74 0.75 0.74 0.77 0.73 0.88 0.83 0.87 0.90 0.90 0.88 0.94 0.92 0.96 0.96
Financial leverage ratio 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 2.69 2.68 2.77 2.80

Eastman Chemical Co's solvency ratios reflect its ability to meet its financial obligations and maintain a healthy financial position. The debt-to-assets ratio has been relatively stable over the quarters, indicating that the company has a moderate level of debt compared to its total assets. The decreasing trend in this ratio from Q1 2023 to Q4 2023 suggests that Eastman Chemical Co has been reducing its reliance on debt to finance its operations.

The debt-to-capital and debt-to-equity ratios show a similar pattern of increase, indicating that a higher proportion of the company's capital structure has been financed through debt. This trend may be a cause for concern as it could indicate higher financial risk and reduced financial flexibility. The rise in these ratios over time suggests that the company may be taking on more debt relative to its capital and equity.

The financial leverage ratio, which measures the company's total assets relative to equity, has also been increasing steadily. This indicates that Eastman Chemical Co's financial leverage has been on the rise, potentially increasing the company's financial risk. A higher financial leverage ratio implies that the company is relying more on debt to support its operations, which could lead to increased interest expenses and reduced financial stability.

Overall, the solvency ratios of Eastman Chemical Co suggest that while the company has managed to maintain a strong financial position with moderate debt levels, there are signs of increasing leverage and reliance on debt financing. It will be important for the company to carefully monitor its debt levels and financial structure to ensure long-term financial sustainability.

Coverage ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Interest coverage 3.67 3.36 3.78 4.28 4.71 7.71 7.95 7.71 7.73 7.48 6.54 4.60 4.57 4.10 4.67 6.19 5.80 5.71 6.24 6.52

The interest coverage ratios for Eastman Chemical Co have been relatively stable over the past eight quarters, ranging from a high of 7.40 in Q2 2022 to a low of 4.73 in Q3 2023. The interest coverage ratio measures the company's ability to meet its interest payment obligations from its earnings before interest and taxes (EBIT).

A higher interest coverage ratio indicates that the company is in a stronger position to cover its interest expenses from its operating profits. Eastman Chemical Co's interest coverage ratios above 5.0 in each quarter suggest that the company has had a comfortable buffer to cover its interest expenses.

However, it is worth noting a slight downward trend in the interest coverage ratio from Q2 2022 to Q3 2023, which could indicate a decreasing ability to meet interest payment obligations from operating profits. This trend would warrant further investigation and monitoring to assess the company's financial health and its ability to fulfill its debt obligations.