International Flavors & Fragrances Inc (IFF)
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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.00 | 2.03 | 2.07 | 2.14 | 2.12 | 1.96 | 1.95 | 1.99 | 2.00 | 2.04 | 1.94 | 1.90 | 1.88 | 1.88 | 1.88 | 1.89 | 2.14 | 2.15 | 2.17 | 2.17 |
International Flavors & Fragrances Inc has consistently maintained a strong solvency position, as evidenced by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which have remained at 0.00 over the period from March 2020 to December 2024. This indicates that the company has minimal financial leverage and is not heavily reliant on debt to finance its operations.
The financial leverage ratio, which measures the extent to which the company is using debt to finance its operations, shows a fluctuating trend over the same period. The ratio was relatively high in the initial quarters of 2020 but gradually decreased to 1.88 by December 2021 before fluctuating slightly in the subsequent quarters.
Overall, the stable and low debt ratios suggest that International Flavors & Fragrances Inc has a conservative capital structure and is effectively managing its debt levels, while the fluctuating financial leverage ratio indicates some variability in the company's debt management strategies over the period analyzed.
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 | 1.91 | -7.06 | -6.25 | -5.87 | -5.63 | 1.31 | -3.73 | -4.02 | -3.80 | -3.96 | 3.60 | 3.31 | 2.19 | 2.39 | 1.98 | 2.61 | 4.60 | 4.69 | 5.11 | 5.59 |
The interest coverage ratio of International Flavors & Fragrances Inc has shown fluctuations over the period under consideration. The ratio measures the company's ability to cover its interest expenses with its operating income.
From March 31, 2020, to June 30, 2021, the interest coverage ratio ranged between 5.59 and 1.98, indicating a relatively healthy ability to cover interest obligations. However, from September 30, 2021, the ratio began to decline significantly, reaching negative values by December 31, 2022.
Negative interest coverage ratios indicate that the company's operating income is insufficient to cover its interest expenses, suggesting financial distress or an unsustainable debt burden. International Flavors & Fragrances Inc experienced a prolonged period of negative interest coverage ratios from September 30, 2022, to June 30, 2024.
The sharp decline in the interest coverage ratio may raise concerns about the company's financial health and its ability to service its debt obligations. Investors and creditors may closely monitor further financial statements and developments to assess the company's repayment capability and financial stability.