Corning Incorporated (GLW)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.23 | 0.25 | 0.21 | 0.28 | 0.31 |
| Debt-to-capital ratio | 0.37 | 0.38 | 0.34 | 0.40 | 0.41 |
| Debt-to-equity ratio | 0.60 | 0.61 | 0.51 | 0.67 | 0.71 |
| Financial leverage ratio | 2.60 | 2.47 | 2.46 | 2.44 | 2.32 |
The solvency ratios of Corning Incorporated show a favorable trend over the years analyzed. The debt-to-assets ratio has decreased from 0.31 in 2020 to 0.23 in 2024, indicating the company's reduced reliance on debt to finance its assets. Similarly, the debt-to-capital ratio has shown a decline from 0.41 in 2020 to 0.37 in 2024, showing an improvement in the proportion of debt to the capital structure.
The debt-to-equity ratio has also decreased from 0.71 in 2020 to 0.60 in 2024, signaling a decrease in the level of financial risk associated with the company's capital structure. The financial leverage ratio has exhibited a generally increasing trend from 2.32 in 2020 to 2.60 in 2024, indicating higher financial risk but may also reflect potential opportunities for leveraging investments.
Overall, the solvency ratios of Corning Incorporated suggest that the company has been effectively managing its debt levels and capital structure, positioning it well in terms of financial stability and operational risk management.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 36.61 | 22.25 | 29.96 | 48.00 | 7.83 |
Given the data provided for Corning Incorporated's interest coverage ratio over the years, the company's ability to cover its interest expenses has significantly improved from 2020 to 2021, with a notable increase to 48.00 in 2021. This substantial improvement indicates that Corning is generating ample earnings to comfortably cover its interest obligations.
In the subsequent years, the interest coverage ratio has remained relatively strong, consistently above 20.00. This suggests that Corning's profitability and cash flow remained robust, allowing the company to easily meet its interest payments.
The fluctuations in the ratio from year to year indicate potential variations in earnings and/or interest expenses. Overall, the trend demonstrates Corning's capacity to manage its debt obligations effectively and indicates the company's financial stability and efficiency in generating profits relative to its interest expenses.