FMC Corporation (FMC)

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	0.25	0.28	0.25	0.20	0.24	0.25	0.25	0.25	0.26	0.25	0.24	0.25	0.29	0.31	0.30	0.35	0.31	0.31	0.22	0.22
Debt-to-capital ratio	0.41	0.48	0.47	0.40	0.45	0.46	0.47	0.47	0.47	0.46	0.46	0.47	0.50	0.51	0.52	0.57	0.54	0.53	0.44	0.44
Debt-to-equity ratio	0.69	0.92	0.90	0.67	0.81	0.86	0.88	0.89	0.87	0.87	0.85	0.87	0.99	1.03	1.07	1.32	1.20	1.14	0.78	0.78
Financial leverage ratio	2.70	3.33	3.56	3.38	3.31	3.38	3.55	3.56	3.42	3.43	3.52	3.46	3.44	3.32	3.54	3.81	3.90	3.70	3.55	3.60

The solvency ratios of FMC Corp. provide insight into the company's ability to meet its long-term financial obligations.

The debt-to-assets ratio has been relatively stable over the past eight quarters, ranging between 0.29 and 0.39. This ratio indicates that, on average, between 29% and 39% of the company's assets have been financed by debt during the periods analyzed.

The debt-to-capital ratio has shown some fluctuation, ranging from 0.47 to 0.58. This ratio reveals the proportion of the company's capital structure that is financed by debt, with values ranging between 47% and 58% over the quarters assessed.

The debt-to-equity ratio has exhibited more variability compared to the other ratios, ranging from 0.90 to 1.40. This ratio reflects the extent to which the company's operations are financed by debt versus equity, with values fluctuating between 90% and 140% over the periods studied.

The financial leverage ratio, representing the extent of financial leverage employed by the company, has also shown variability, fluctuating between 2.70 and 3.56. This ratio indicates the multiple by which the company's assets exceed its equity, with values ranging from 2.70 to 3.56 in the quarters analyzed.

Overall, FMC Corp.'s solvency ratios suggest that the company has maintained a relatively stable level of debt relative to its assets and capital base. However, there have been fluctuations in the debt-to-equity ratio and financial leverage ratio, signaling changes in the company's leverage and capital structure over the quarters analyzed.

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	2.34	4.14	5.14	6.61	7.54	7.30	7.82	8.39	7.89	6.87	6.61	6.09	5.97	5.42	5.01	5.04	5.18	6.03	6.00	5.22

Interest coverage is a financial ratio that reflects a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.

Analyzing the interest coverage ratio of FMC Corp. over the past eight quarters shows a general trend of improvement. In Q1 2022, the interest coverage ratio was 9.34, indicating that FMC Corp. generated operating income more than nine times the amount needed to cover its interest expenses for that quarter.

However, the interest coverage ratio has shown a consistent decline since then, reaching its lowest point of 3.24 in Q4 2023. This indicates that FMC Corp.'s operating income in Q4 2023 only covered its interest expenses around three times.

Overall, the declining trend in the interest coverage ratio of FMC Corp. raises concerns about its ability to comfortably meet its interest obligations with its operating income. Further monitoring of the company's financial performance and debt management strategies would be advisable to ensure its long-term financial health.