JetBlue Airways Corp (JBLU)
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 | 6.38 | 4.15 | 3.66 | 3.54 | 3.39 |
The solvency ratios of JetBlue Airways Corp indicate a strong financial position with minimal debt obligations relative to its assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have consistently been at 0.00 over the five-year period from December 31, 2020, to December 31, 2024. This signifies that the company's total debt is negligible compared to its total assets, capital, and equity, reflecting a low level of financial risk.
On the other hand, the Financial leverage ratio has shown an increasing trend over the same period, rising from 3.39 as of December 31, 2020, to 6.38 by December 31, 2024. This indicates that the company's reliance on debt to finance its operations has been growing steadily. While the increasing financial leverage ratio may raise concerns about the company's risk exposure and potential financial vulnerability, the fact that the other solvency ratios remain at 0.00 suggests that JetBlue Airways Corp has been managing its debt levels effectively relative to its assets, capital, and equity.
Overall, the solvency ratios analysis reveals that JetBlue Airways Corp has maintained a solid solvency position with minimal debt relative to its financial metrics, assuring stakeholders of the company's ability to meet its financial obligations and sustain its operations in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -1.56 | -0.59 | -1.63 | -0.39 | -9.65 |
Based on the provided data, JetBlue Airways Corp's interest coverage ratio has been consistently negative over the past five years. The interest coverage ratio indicates the company's ability to pay interest expenses on its outstanding debt with its operating income. Negative values indicate that the company's operating income is insufficient to cover its interest expenses.
JetBlue's interest coverage ratios have deteriorated from -9.65 in December 2020 to -1.56 in December 2024. This downward trend suggests that the company's ability to meet its interest obligations has weakened over the years, potentially indicating financial distress.
A consistently negative interest coverage ratio can be a cause for concern for investors and creditors as it underscores the company's struggles in generating enough operating income to service its debt obligations. JetBlue may face challenges in refinancing debt or obtaining new financing at favorable terms with such low interest coverage ratios.
Overall, JetBlue Airways Corp's interest coverage ratio data signals potential financial difficulties and underscores the importance of closely monitoring the company's financial performance and debt management strategies in the future.