FMC Corporation (FMC)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.60 | 2.65 | 2.66 | 2.78 | 2.70 | 3.31 | 3.54 | 3.36 | 3.28 | 3.36 | 3.53 | 3.54 | 3.47 | 3.41 | 3.49 | 3.44 | 3.41 | 3.29 | 3.51 | 3.77 |
FMC Corporation exhibits strong solvency ratios based on the provided data. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have consistently remained at 0.00 from March 2020 to December 2024, indicating that the company has no debt relative to its total assets, capital, and equity. This suggests a low financial risk and a conservative capital structure.
The Financial leverage ratio, which measures the extent to which a company relies on debt financing, shows a declining trend from 3.77 in March 2020 to 2.60 in December 2024. This decrease signifies a reduction in the company's reliance on debt to finance its operations and indicates a strengthening financial position over the years.
Overall, FMC Corporation's solvency ratios reflect a stable and healthy financial condition with negligible debt levels and a decreasing reliance on debt financing, positioning the company well to weather economic downturns and pursue growth opportunities.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.06 | 1.12 | 0.96 | 1.23 | 2.26 | 4.05 | 5.08 | 6.53 | 7.46 | 7.23 | 7.71 | 8.27 | 7.79 | 6.73 | 6.41 | 5.94 | 5.83 | 5.32 | 4.98 | 5.01 |
The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt from its operating income. A higher interest coverage ratio is generally favorable as it indicates that the company is more capable of meeting its interest obligations.
Analyzing the interest coverage ratio of FMC Corporation over the provided time period, we observe a fluctuating trend. The interest coverage ratio increased steadily from March 31, 2020 (5.01) to December 31, 2021 (7.79), indicating an improving ability to cover interest expenses. This trend suggested that the company's operating income was sufficiently strong to cover its interest obligations.
However, from March 31, 2022 (8.27) to June 30, 2024 (0.96), the interest coverage ratio exhibited a declining trend. This decline could raise concerns as it signifies a potential strain on the company's ability to cover interest expenses with its operating income. A decreasing interest coverage ratio could indicate financial distress or increased risk of default on debt payments.
Moreover, the sharp decrease in the interest coverage ratio from March 31, 2024 (1.23) to December 31, 2024 (2.06) suggests a significant deterioration in the company's ability to cover interest expenses in the most recent period.
In conclusion, the fluctuating trend in FMC Corporation's interest coverage ratio indicates varying levels of financial health and management of debt obligations over the analyzed period. Investors and stakeholders should closely monitor this ratio to assess the company's financial stability and ability to service its debt.