Ingredion Incorporated (INGR)

Ingredion Inc has demonstrated consistent improvement in its solvency ratios over the past five years.

1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets that are financed by debt. Ingredion Inc has maintained a relatively low debt-to-assets ratio, ranging from 0.29 to 0.33 over the past five years, indicating that the company has been effective in managing its debt levels relative to its total assets.

2. Debt-to-capital ratio: This ratio shows the proportion of a company's capital that is financed by debt. Ingredion Inc has also shown a decreasing trend in its debt-to-capital ratio, declining from 0.44 in 2022 to 0.38 in 2023. This suggests that the company has been reducing its reliance on debt to finance its operations.

3. Debt-to-equity ratio: The debt-to-equity ratio indicates the extent of a company's financing provided by creditors versus shareholders. Ingredion Inc has demonstrated consistent improvement in its debt-to-equity ratio, decreasing from 0.79 in 2022 to 0.62 in 2023. This signifies a stronger financial position and reduced financial risk for the company.

4. Financial leverage ratio: This ratio measures the extent to which a company relies on debt financing. Ingredion Inc has managed to decrease its financial leverage ratio from 2.40 in 2022 to 2.16 in 2023, indicating a lower reliance on debt to fund its operations.

Overall, based on the solvency ratios analyzed, Ingredion Inc appears to be effectively managing its debt levels and improving its financial strength and stability over the years. This reflects positively on the company's ability to meet its financial obligations and withstand financial challenges in the long term.

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Coverage ratios

The interest coverage ratio for Ingredion Inc was not provided for the years 2021, 2022, and 2023. However, looking at the data available from 2019 to 2020, we can see a positive trend in the company's ability to cover its interest expenses. In 2019, the interest coverage ratio was 9.12, and it improved to 10.39 in 2020.

A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations from its operating income. This improvement over the two-year period suggests that Ingredion Inc has been better positioned to handle its interest expenses. It is essential for investors and creditors to monitor future interest coverage ratios to assess the company's financial health and ability to meet its debt obligations.