International Seaways Inc (INSW)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.42 | 1.47 | 1.76 | 2.07 | 1.63 |
International Seaways Inc has consistently maintained a strong solvency position, as evidenced by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 across the years 2020 to 2024. These ratios indicate that the company has minimal debt relative to its assets, capital, and equity, which suggests a low financial risk and a healthy balance sheet.
Additionally, the financial leverage ratio has shown a decreasing trend over the years, from 1.63 in 2020 to 1.42 in 2024. This decreasing trend signifies that the company is relying less on debt financing to support its operations, which is a positive indicator for investors and creditors. Overall, International Seaways Inc's solvency ratios demonstrate a strong financial position and efficient use of capital to support its business activities.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 9.36 | 9.36 | 7.74 | -2.90 | 0.72 |
International Seaways Inc's interest coverage ratio has shown significant fluctuations over the past five years. As of December 31, 2020, the company's interest coverage ratio was 0.72, indicating that it only generated enough earnings before interest and taxes to cover its interest expenses 0.72 times.
The situation worsened in 2021 with an interest coverage ratio of -2.90, suggesting that the company's earnings were insufficient to cover its interest payments, which raises concerns about its financial health and ability to meet debt obligations.
However, there was a notable turnaround in the following years, with the interest coverage ratio improving to 7.74 as of December 31, 2022, and further to 9.36 in both 2023 and 2024. These improvements indicate that International Seaways Inc's earnings have substantially increased, allowing the company to comfortably cover its interest expenses.
Overall, while the company faced challenges in 2021 with negative interest coverage, the subsequent years showed a positive trend in its ability to generate earnings to meet its interest obligations, reflecting improved financial stability.