Ingredion Incorporated (INGR)
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 | 1.93 | 1.88 | 1.95 | 1.97 | 2.13 | 2.21 | 2.22 | 2.32 | 2.37 | 2.38 | 2.32 | 2.24 | 2.23 | 2.24 | 2.49 | 2.56 | 2.30 | 2.36 | 2.50 | 2.28 |
Ingredion Incorporated's solvency ratios indicate a strong financial position with consistently low debt levels compared to its assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 throughout the reported periods, implying that the company operates with minimal financial leverage and has effectively financed its operations without relying heavily on debt.
The Financial leverage ratio, which measures the proportion of a company's debt to its equity, has shown a decreasing trend from 2.28 in March 2020 to 1.93 in December 2024. This reduction indicates that the company has been gradually decreasing its reliance on debt to fund its operations, which is a positive sign of financial stability and strength.
Overall, based on the solvency ratios analysis, Ingredion Incorporated appears to have a solid financial foundation with a conservative capital structure and a prudent approach to managing its debt levels, positioning the company well for long-term sustainability and resilience in the face of economic uncertainties.
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 | 27.00 | 19.30 | 12.48 | 9.35 | 8.25 | 7.45 | 7.36 | 7.93 | 7.77 | 8.70 | 9.00 | 8.89 | 4.35 | 4.91 | 4.57 | 3.35 | 7.38 | 7.73 | 8.00 | 8.88 |
Ingredion Incorporated's interest coverage ratio provides insight into the company's ability to meet its interest payments on outstanding debt. The interest coverage ratio is calculated by dividing the earnings before interest and taxes (EBIT) by the interest expense.
Based on the provided data, Ingredion's interest coverage ratio fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio started at 8.88 on March 31, 2020, indicating that the company could cover its interest payments almost nine times over with its operating income.
However, the interest coverage ratio experienced a decline over the following quarters, reaching a low point of 3.35 on March 31, 2021, suggesting a potential strain on the company's ability to cover its interest expenses from its operating income.
Subsequently, the interest coverage ratio showed signs of improvement, gradually increasing to 27.00 by December 31, 2024, reflecting a significant enhancement in the company's ability to meet its interest obligations.
Overall, the trend in Ingredion's interest coverage ratio indicates fluctuations in the company's ability to cover its interest payments with its operating income during the period under review. It is important for stakeholders to monitor this ratio to assess the company's financial health and ability to manage its debt obligations effectively.