GE Vernova LLC (GEV)

GE Vernova LLC shows consistently strong solvency ratios over the given periods. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all remain at 0.00, indicating that the company has no debt relative to its assets, capital, or equity during this period. This reflects a low level of financial risk and implies that the company is not relying on debt to finance its operations.

The Financial leverage ratio shows a slight increasing trend over the period, starting at 5.26 on December 31, 2023, and reaching 5.39 on December 31, 2024. While the ratio is relatively high, it is important to note that the company's debt is still significantly lower than its equity, indicating a conservative capital structure and a healthy financial position.

Overall, based on these solvency ratios, GE Vernova LLC appears to be in a strong financial position with minimal debt obligations and a conservative approach to financing, which may help to mitigate financial risks and support long-term sustainability.

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Coverage ratios

Interest coverage measures a company's ability to meet its interest obligations using its earnings before interest and taxes (EBIT). Looking at the data provided for GE Vernova LLC, we can see a fluctuating trend in the interest coverage ratio over the five periods.

As of December 31, 2023, the interest coverage ratio was extremely low at 0.27, indicating that the company's EBIT was only sufficient to cover 27% of its interest expenses. This suggests a high risk of default on interest payments during that period.

However, by March 31, 2024, the interest coverage ratio improved significantly to 1.97, indicating a better ability to cover interest expenses. The ratio further increased to 6.41 by June 30, 2024, showing a considerable improvement in the company's financial health.

Although there was a slight decline in the interest coverage ratio to 2.51 by September 30, 2024, it remained above 2, which is generally considered a healthy level. By December 31, 2024, the interest coverage ratio further improved to 4.29, indicating the company's enhanced capacity to meet its interest obligations comfortably.

Overall, the trend in GE Vernova LLC's interest coverage ratio shows both challenges and improvements in managing its interest expenses. It is essential for the company to monitor and maintain a healthy interest coverage ratio to ensure financial stability and avoid defaulting on its debt obligations.