Corning Incorporated (GLW)
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 | 0.23 | 0.25 | 0.24 | 0.24 | 0.25 | 0.23 | 0.25 | 0.22 | 0.21 | 0.21 | 0.22 | 0.24 | 0.28 | 0.28 | 0.29 | 0.29 | 0.31 | 0.30 | 0.32 | 0.31 |
| Debt-to-capital ratio | 0.37 | 0.39 | 0.38 | 0.37 | 0.38 | 0.36 | 0.38 | 0.35 | 0.34 | 0.34 | 0.35 | 0.37 | 0.40 | 0.41 | 0.42 | 0.39 | 0.41 | 0.42 | 0.42 | 0.41 |
| Debt-to-equity ratio | 0.60 | 0.63 | 0.61 | 0.60 | 0.61 | 0.57 | 0.62 | 0.54 | 0.51 | 0.52 | 0.55 | 0.59 | 0.67 | 0.69 | 0.71 | 0.65 | 0.71 | 0.73 | 0.74 | 0.70 |
| Financial leverage ratio | 2.60 | 2.55 | 2.57 | 2.46 | 2.47 | 2.47 | 2.51 | 2.42 | 2.46 | 2.55 | 2.53 | 2.44 | 2.44 | 2.45 | 2.49 | 2.25 | 2.32 | 2.39 | 2.29 | 2.28 |
Corning Incorporated's solvency ratios provide insight into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a decreasing trend over the past few years, indicating that the company's proportion of debt to total assets has been declining, which could be seen as positive for creditors and investors. This trend suggests that Corning has been managing its debt levels effectively.
Similarly, the debt-to-capital ratio has also exhibited a downward trajectory, showing that the company is relying less on debt financing in relation to its total capital structure. This suggests improved financial stability and reduced financial risk for Corning.
Analyzing the debt-to-equity ratio, we observe a consistent decrease over the period, indicating that the company has been relying less on equity and more on debt to finance its operations. A declining debt-to-equity ratio can suggest that Corning is becoming more leveraged and could potentially face higher financial risk.
The financial leverage ratio measures the extent to which the company's operations are financed by debt. Corning's financial leverage ratio has been fluctuating but generally trending upwards, indicating an increase in financial leverage over time. This could imply a higher risk for the company as it is relying more on debt to support its operations and growth.
In conclusion, Corning's solvency ratios reflect a mixed picture. While the company has been reducing its reliance on debt in relation to assets and capital, indicating improved financial health, the increasing financial leverage ratio suggests heightened risk due to greater reliance on debt financing. Investors and creditors should consider these ratios collectively to assess Corning's overall solvency and financial stability.
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 | 3.45 | 2.41 | 2.22 | 2.52 | 2.71 | 2.85 | 3.12 | 3.92 | 4.92 | 6.35 | 7.27 | 7.41 | 7.04 | 6.97 | 6.03 | 3.92 | 1.84 | 0.69 | 1.17 | 4.18 |
The interest coverage ratio of Corning Incorporated has shown fluctuations over the reporting periods from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income. A higher ratio indicates better ability to meet interest obligations.
From March 31, 2020, to September 30, 2021, the interest coverage ratio of Corning Inc. gradually increased from 4.18 to 6.97, indicating an improvement in the company's ability to cover its interest expenses. This positive trend continued until June 30, 2022, where the ratio peaked at 7.41, reflecting a strong ability to meet interest payments.
However, starting from September 30, 2022, the interest coverage ratio started to decline, reaching 2.41 by December 31, 2024. This downward trend suggests a decrease in the company's ability to cover its interest expenses with its operating income. It is important for investors and stakeholders to monitor this ratio closely, as a declining trend may signal potential financial challenges in the future.
Overall, while Corning Inc. demonstrated a strong ability to cover its interest expenses during the earlier reporting periods, the decreasing trend in the interest coverage ratio in the latter periods indicates a potential need for the company to focus on improving its operating income to maintain a healthy financial position in the long run.