EQT Corporation (EQT)
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 | 0.22 | 0.22 | 0.20 | 0.22 | 0.23 | 0.19 | 0.20 | 0.00 | 0.21 | 0.03 | 0.00 | 0.02 | 0.26 | 0.01 | 0.00 | 0.04 | 0.28 | 0.19 | 0.19 | 0.23 |
| Debt-to-capital ratio | 0.27 | 0.28 | 0.26 | 0.29 | 0.32 | 0.31 | 0.34 | 0.00 | 0.31 | 0.08 | 0.00 | 0.03 | 0.34 | 0.03 | 0.00 | 0.08 | 0.35 | 0.26 | 0.26 | 0.29 |
| Debt-to-equity ratio | 0.37 | 0.39 | 0.35 | 0.42 | 0.47 | 0.45 | 0.51 | 0.00 | 0.46 | 0.09 | 0.00 | 0.03 | 0.52 | 0.03 | 0.00 | 0.08 | 0.54 | 0.35 | 0.35 | 0.41 |
| Financial leverage ratio | 1.71 | 1.73 | 1.77 | 1.87 | 2.03 | 2.34 | 2.50 | 2.66 | 2.17 | 2.79 | 2.29 | 1.96 | 1.96 | 1.99 | 1.91 | 1.93 | 1.92 | 1.85 | 1.82 | 1.83 |
The solvency ratios of EQT Corp reflect its ability to meet its long-term financial obligations. The debt-to-assets ratio has ranged between 0.21 to 0.25 over the past eight quarters, indicating that 21%-25% of the company's total assets are financed by debt. This suggests a relatively low level of financial risk and a strong asset base.
The debt-to-capital ratio has varied from 0.28 to 0.38 during the same period, showing that debt constitutes 28%-38% of the company's total capital structure. This ratio helps in understanding the extent to which debt is used to finance operations compared to equity. The decreasing trend in this ratio may indicate a decrease in the company's reliance on debt financing.
The debt-to-equity ratio has fluctuated between 0.39 to 0.62 over the last eight quarters, illustrating the proportion of debt relative to equity in the company's capital structure. A lower ratio is generally favorable as it indicates a lower level of financial leverage and lower risk. The decreasing trend in this ratio suggests a decreasing reliance on debt to finance operations.
Finally, the financial leverage ratio has shown a decreasing trend from 2.66 to 1.71 over the past two years, indicating a reduction in the company's overall financial risk and leverage. This ratio measures the proportion of total assets that are financed by equity versus debt. A decreasing trend in this ratio suggests that the company is becoming less reliant on debt to finance its operations.
In conclusion, the solvency ratios of EQT Corp demonstrate a stable financial position with a decreasing reliance on debt financing over the last eight quarters, which may indicate a more sustainable financial structure and lower financial risk for the company.
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 | 10.58 | 19.38 | 23.77 | 26.76 | 10.31 | 10.23 | -2.64 | -11.19 | -4.42 | -12.88 | -6.60 | -3.38 | -3.84 | -10.86 | -10.30 | -8.53 | -6.99 | -2.72 | -1.06 | -2.06 |
The interest coverage ratio for EQT Corp has shown variability over the past eight quarters. The ratio measures the company's ability to cover its interest expenses with its operating income. In Q4 2023, EQT Corp had an interest coverage ratio of 11.50, indicating that the company generated operating income 11.50 times greater than its interest expenses for that period.
The interest coverage ratio improved significantly in Q3 2023 to 20.30 and further increased in Q2 2023 to 24.89, suggesting a strong ability to cover interest payments. Q1 2023 saw a further improvement with an interest coverage ratio of 28.34, indicating a very healthy financial position in terms of covering interest costs.
Looking back at Q4 2022 and Q3 2022, the interest coverage ratios were 12.65 and 12.69 respectively, showing relatively consistent performance in covering interest expenses during that period. However, there was a notable decrease in Q2 2022 with a negative interest coverage ratio of -0.28 and a significant decline in Q1 2022 with a ratio of -8.95, indicating that operating income was insufficient to cover interest payments during those quarters.
Overall, the trend in EQT Corp's interest coverage ratio has been positive in recent quarters, suggesting an improving ability to cover interest expenses with operating income. However, it is essential to monitor this ratio closely to ensure the company maintains its ability to meet its financial obligations.