Ingredion Incorporated (INGR)

Based on the provided data for Ingredion Incorporated, the solvency ratios indicate a strong financial position in terms of debt management over the years.

1. Debt-to-assets ratio: The company has consistently maintained a debt-to-assets ratio of 0.00 over the five-year period. This implies that Ingredion has not relied heavily on debt to finance its assets, indicating a low level of financial risk.

2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also been constant at 0.00 throughout the observed period. This suggests that Ingredion has predominantly used equity financing rather than debt to fund its operations and investments.

3. Debt-to-equity ratio: Ingredion's debt-to-equity ratio has remained at 0.00 from 2020 to 2024, indicating that the company's financial structure is well-balanced with minimal reliance on debt funding relative to equity.

4. Financial leverage ratio: The financial leverage ratio has shown a declining trend from 2.30 in 2020 to 1.96 in 2024. A decreasing financial leverage ratio signifies a reduction in the company's reliance on debt to support its operations, which can indicate improved financial stability and lower financial risk over time.

Overall, the solvency ratios reflect Ingredion's prudent debt management strategies, with consistently low leverage and minimal reliance on debt financing to support its financial health and stability.

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Coverage ratios

The interest coverage ratio for Ingredion Incorporated has shown some fluctuations over the past five years. In December 2020, the ratio was 7.26, indicating that the company was able to cover its interest expenses 7.26 times over with its earnings before interest and taxes (EBIT). By December 2021, the interest coverage ratio decreased to 4.35, suggesting a decline in the company's ability to meet its interest obligations from operating profits.

However, there was a notable improvement in the interest coverage ratio in the following years. In December 2022, the ratio increased to 7.71, and further improved to 8.36 by December 2023, demonstrating a stronger ability to cover interest expenses with earnings. The most significant rise was observed in December 2024, with an interest coverage ratio of 24.87, indicating a substantial increase in the company's financial stability and capacity to pay off interest payments.

Overall, the trend in Ingredion Incorporated's interest coverage ratio indicates some variability, with a temporary dip in 2021 followed by a consistent upward trend in subsequent years, culminating in a significantly improved ratio by the end of 2024. This suggests an enhancement in the company's ability to service its debt and implies better financial health and stability over the analyzed period.