EQT Corporation (EQT)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.23 | 0.22 | 0.23 | 0.21 | 0.26 |
| Debt-to-capital ratio | 0.30 | 0.27 | 0.32 | 0.31 | 0.34 |
| Debt-to-equity ratio | 0.44 | 0.37 | 0.47 | 0.46 | 0.52 |
| Financial leverage ratio | 1.93 | 1.71 | 2.03 | 2.17 | 1.96 |
Based on the data provided for EQT Corporation, we can analyze the solvency ratios as follows:
1. Debt-to-assets ratio:
- The debt-to-assets ratio decreased from 0.26 in 2020 to 0.21 in 2021, indicating a lower proportion of debt relative to total assets. It then slightly increased to 0.23 in 2022 and 2024, suggesting a moderate level of debt compared to the company's total assets.
2. Debt-to-capital ratio:
- The debt-to-capital ratio declined from 0.34 in 2020 to 0.31 in 2021 and further decreased to 0.27 in 2023. This trend indicates a decreasing reliance on debt in the company's capital structure, potentially reducing financial risk. However, it marginally increased to 0.30 in 2024.
3. Debt-to-equity ratio:
- The debt-to-equity ratio decreased from 0.52 in 2020 to 0.46 in 2021 and then to 0.37 in 2023, showing a decreasing trend in the proportion of debt relative to equity. However, it increased to 0.44 in 2024, suggesting a higher level of debt compared to equity.
4. Financial leverage ratio:
- The financial leverage ratio fluctuated, increasing from 1.96 in 2020 to 2.17 in 2021, and then decreased to 1.71 in 2023. This ratio reflects the company's ability to utilize debt to generate returns for shareholders. The ratio increased to 1.93 in 2024, indicating a slightly higher level of financial leverage.
Overall, the solvency ratios of EQT Corporation show variations over the years, with a general trend of decreasing reliance on debt in the capital structure, except for a slight increase in debt-to-equity ratio in 2024. This analysis suggests that EQT Corporation has been managing its debt levels effectively to maintain a balanced solvency position.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 12.69 | 10.58 | 10.31 | -4.42 | -3.84 |
The interest coverage ratio for EQT Corporation has shown a significant improvement over the years based on the given data. In December 2020 and 2021, the company had negative interest coverage ratios of -3.84 and -4.42, indicating that EQT's earnings were insufficient to cover its interest expenses during those periods.
However, there was a notable recovery starting from December 2022, with the interest coverage ratio increasing to 10.31, and further improving to 10.58 in December 2023. This suggests that EQT's earnings became more than sufficient to cover its interest obligations, reflecting a more stable financial position.
By December 2024, EQT Corporation's interest coverage ratio had improved even further to 12.69, indicating a continued strengthening of the company's ability to meet its interest payments from its operating earnings. This positive trend in the interest coverage ratio demonstrates improved financial health and reduced risk of insolvency related to debt servicing for EQT Corporation.