Fluor Corporation (FLR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.32 | 3.59 | 3.82 | 5.23 | 7.10 |
Fluor Corporation has exhibited a consistent trend of maintaining a very low level of debt in relation to its assets, capital, and equity over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 from December 31, 2020, to December 31, 2024, indicating that the company has not relied heavily on debt to finance its operations.
Furthermore, the Financial leverage ratio has shown a decreasing trend from 7.10 in 2020 to 2.32 in 2024. This suggests that Fluor Corporation has been gradually reducing its financial leverage, which is a positive sign of improving solvency and financial stability.
Overall, the solvency ratios paint a picture of a financially healthy company with a strong balance sheet and a conservative approach to debt management. These ratios indicate that Fluor Corporation has a solid financial position and is well-equipped to meet its financial obligations in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 14.33 | 4.33 | 2.68 | -3.04 | 0.93 |
Interest coverage is a financial ratio that indicates a company's ability to meet its interest obligations. A higher interest coverage ratio is generally preferred as it suggests better financial health and a lower risk of default.
In the case of Fluor Corporation, the interest coverage ratio has been fluctuating over the years. As of December 31, 2020, the interest coverage ratio was 0.93, indicating that the company's earnings before interest and taxes (EBIT) were just enough to cover its interest expenses. The negative interest coverage ratio of -3.04 on December 31, 2021, suggests that the company's EBIT was insufficient to cover its interest payments.
However, the interest coverage ratio improved significantly to 2.68 on December 31, 2022, indicating a better ability to meet interest obligations. This positive trend continued with a ratio of 4.33 on December 31, 2023, and a notably healthy ratio of 14.33 on December 31, 2024, demonstrating a strong ability to comfortably cover interest expenses.
Overall, the trend in Fluor Corporation's interest coverage ratio shows fluctuation and improvement over the years, with a significant increase in recent years indicating better financial stability and a reduced risk of default.