Fluor Corporation (FLR)

Fluor Corporation's solvency ratios indicate the company's ability to meet its long-term financial obligations. The Debt-to-assets ratio has been relatively stable over the past five years, indicating that the company has maintained a healthy balance between debt and assets. This ratio was 0.17 in both 2023 and 2022, showing a consistent level of financial stability.

The Debt-to-capital ratio has shown a decreasing trend from 0.63 in 2020 to 0.37 in 2023. This suggests that Fluor Corporation has been reducing its reliance on debt in relation to its total capital. A lower Debt-to-capital ratio is generally considered favorable as it indicates a lower level of financial risk.

The Debt-to-equity ratio has fluctuated over the years, with a notable decrease from 1.68 in 2020 to 0.60 in 2023. This reduction implies that the company has become less leveraged and has strengthened its financial position by relying more on equity financing as opposed to debt financing.

The Financial leverage ratio, which measures the company's total assets in relation to equity, has also shown a downward trend over the years. This decrease indicates that Fluor Corporation has reduced its reliance on debt to finance its assets and operations, which is a positive sign for solvency.

Overall, the solvency ratios of Fluor Corporation have exhibited improvements over the years, reflecting a stronger financial position and reduced financial risk. This trend suggests that the company is effectively managing its debt levels and maintaining a solid solvency position in the industry.

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Coverage ratios

The interest coverage ratio for Fluor Corporation provides insight into the company's ability to meet its interest obligations using its operating income. In 2021 and 2020, the interest coverage ratio was 2.87 and 3.11, respectively, indicating that the company generated enough operating income to cover its interest expenses. The significant increase from 2019 to 2020 suggests improved financial health and a better ability to service debt. However, the negative ratio of -29.72 in 2019 was a red flag, implying that the company's operating income was insufficient to cover interest expenses during that period. It is important for investors and creditors to monitor the interest coverage ratio over time to assess the company's financial stability and ability to fulfill its debt obligations.