Green Plains Renewable Energy Inc (GPRE)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.24 | 0.25 | 0.23 | 0.24 | 0.18 |
| Debt-to-capital ratio | 0.33 | 0.37 | 0.35 | 0.35 | 0.31 |
| Debt-to-equity ratio | 0.50 | 0.58 | 0.54 | 0.54 | 0.44 |
| Financial leverage ratio | 2.06 | 2.30 | 2.33 | 2.27 | 2.44 |
Green Plains Renewable Energy Inc's solvency ratios show a mixed trend over the period from December 31, 2020, to December 31, 2024.
- The Debt-to-assets ratio has seen a slight increase from 0.18 in 2020 to 0.24 in 2024, indicating that the company's reliance on debt in relation to its total assets has increased moderately.
- The Debt-to-capital ratio has fluctuated over the period, increasing from 0.31 in 2020 to 0.37 in 2023 before decreasing to 0.33 in 2024. This ratio shows the proportion of debt used to finance the company's operations in comparison to its total capital.
- The Debt-to-equity ratio has shown an upward trend, rising from 0.44 in 2020 to 0.58 in 2023, before declining slightly to 0.50 in 2024. This ratio indicates the extent to which the company is leveraged through debt in comparison to its equity.
- The Financial leverage ratio has decreased steadily from 2.44 in 2020 to 2.06 in 2024. This ratio reflects the company's financial risk and the extent to which it is using debt to finance its operations.
Overall, Green Plains Renewable Energy Inc's solvency ratios suggest a varying level of dependence on debt over the years, with the company showing some fluctuations in its leverage and capital structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -7.11 | -1.63 | -2.75 | 0.04 | -2.98 |
Based on the provided data, the interest coverage ratio of Green Plains Renewable Energy Inc has displayed a concerning trend over the past five years.
In December 2020, the interest coverage ratio was -2.98, indicating that the company's operating income was insufficient to cover its interest expenses, reflecting a potential risk of financial distress.
However, in December 2021, the interest coverage ratio improved slightly to 0.04. Although this increase suggests a marginal enhancement in the company's ability to cover its interest payments, the ratio remains close to breakeven, signaling ongoing financial vulnerability.
Subsequently, the ratio deteriorated in December 2022 to -2.75, suggesting a regression in the company's financial health and its ability to meet interest obligations.
This negative trend continued in December 2023 with an interest coverage ratio of -1.63, indicating persistent challenges in generating enough operating income to cover interest expenses.
The situation worsened significantly in December 2024, with the interest coverage ratio plummeting to -7.11. This sharp decline underscores a severe mismatch between Green Plains Renewable Energy Inc's earnings and its interest payments, presenting a substantial risk to the company's financial stability and ability to service its debt.
Overall, the consistent negative interest coverage ratios highlight a critical issue for Green Plains Renewable Energy Inc, signaling potential financial distress and the need for a comprehensive review of its financial strategies and debt management practices to mitigate these risks.