GE Vernova LLC (GEV)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | — |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | — |
| Financial leverage ratio | 5.39 | 6.22 | 4.18 | — |
Based on the provided data for GE Vernova LLC, the solvency ratios demonstrate a consistent and favorable trend over the years.
Debt-to-assets ratio:
- The debt-to-assets ratio was not available in 2021 and stood at 0.00 for the subsequent years (2022 to 2024). This indicates that the company has not taken on any debt relative to its total assets.
Debt-to-capital ratio:
- Similar to the debt-to-assets ratio, the debt-to-capital ratio was not available in 2021 and remained at 0.00 from 2022 to 2024. This shows that the company has not relied on debt to finance its operations in relation to its capital.
Debt-to-equity ratio:
- The debt-to-equity ratio was not reported for 2021 and also remained at 0.00 for 2022 to 2024. This suggests that the company's level of debt relative to its equity is very low or non-existent.
Financial leverage ratio:
- The financial leverage ratio, which reflects the proportion of assets financed by debt, showed an increase from 4.18 in 2022 to 6.22 in 2023 before declining to 5.39 in 2024. This indicates that in 2023, the company relied more on debt financing but managed to lower its leverage in 2024.
Overall, the consistent low levels of debt ratios (debt-to-assets, debt-to-capital, and debt-to-equity) coupled with a manageable financial leverage ratio suggest that GE Vernova LLC has maintained a strong solvency position and has been effective in managing its debt levels relative to its assets, capital, and equity over the years analyzed.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Interest coverage | 0.00 | -0.45 | -15.38 | -4.02 |
Interest coverage is a key financial ratio that indicates a company's ability to meet its interest obligations from its operating income. A higher interest coverage ratio is generally seen as favorable as it suggests the company has sufficient earnings to cover its interest expenses. Conversely, a lower interest coverage ratio may indicate a potential risk of default on interest payments.
For GE Vernova LLC, the trend in interest coverage over the years is concerning. In 2021, the interest coverage ratio was -4.02, indicating that the company's operating income was insufficient to cover its interest expenses, raising doubts about its financial health. The situation worsened in 2022 with an interest coverage ratio of -15.38, suggesting a significant inability to meet interest obligations.
Although there was a slight improvement in 2023 with an interest coverage ratio of -0.45, the company still struggled to cover its interest expenses from its operating income. The interest coverage ratio reaching 0.00 in 2024 implies that the company barely generated enough earnings to cover its interest payments, posing a high risk of default.
Overall, the persistent negative and low interest coverage ratios of GE Vernova LLC highlight a significant vulnerability in servicing its interest obligations, potentially indicating financial distress and a heightened risk for lenders and investors.