FMC Corporation (FMC)
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 | 2.60 | 2.70 | 3.28 | 3.47 | 3.41 |
The solvency ratios of FMC Corporation indicate a consistently strong financial position over the years analyzed. 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, suggesting that the company has not relied heavily on debt to finance its operations and investments.
The Financial leverage ratio, which measures the extent to which the company uses debt to finance its assets, decreased from 3.41 in 2020 to 2.60 in 2024. This decrease indicates a trend towards lower reliance on debt as a source of financing, which can be seen as a positive sign of improved financial stability and reduced financial risk for the company.
Overall, based on these solvency ratios, it appears that FMC Corporation has maintained a conservative approach to managing its finances, with a healthy balance between debt and equity and a decreasing reliance on debt over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.76 | 2.26 | 7.46 | 7.82 | 5.81 |
The interest coverage ratio for FMC Corporation has shown variability over the past five years. In December 2020, the interest coverage ratio was 5.81, indicating that the company earned 5.81 times the amount needed to cover its interest expense. This ratio increased to 7.82 by December 2021 and slightly decreased to 7.46 by December 2022, indicating improved financial health and ability to meet interest obligations.
However, there was a significant decline in the interest coverage ratio to 2.26 by December 2023, suggesting a potential strain on FMC Corporation's ability to cover its interest payments with its operating income. This ratio slightly recovered to 2.76 by December 2024 but still remains at a lower level compared to the previous years.
Overall, the trend in FMC Corporation's interest coverage ratio indicates some fluctuations, with a notable decrease in 2023. This decline may raise concerns about the company's financial stability and its ability to comfortably meet its interest obligations in the short term.