JetBlue Airways Corp (JBLU)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.22 | 0.29 | 0.37 | 0.20 |
| Debt-to-capital ratio | 0.00 | 0.44 | 0.51 | 0.56 | 0.33 |
| Debt-to-equity ratio | 0.00 | 0.80 | 1.03 | 1.25 | 0.49 |
| Financial leverage ratio | 4.15 | 3.66 | 3.54 | 3.39 | 2.48 |
From the provided solvency ratios of Jetblue Airways Corp over the past five years, we can observe the following trends:
1. Debt-to-assets ratio:
The company's debt-to-assets ratio has fluctuated over the years, reaching its highest in 2020 at 0.36 and lowest in 2019 at 0.20. The ratio indicates that, on average, 34% of the company's assets are financed by debt, implying a moderate level of leverage.
2. Debt-to-capital ratio:
Jetblue's debt-to-capital ratio has shown a general upward trend from 0.33 in 2019 to 0.59 in 2023. This ratio represents the proportion of the company's capital structure funded by debt, and the increasing trend suggests a higher reliance on debt financing relative to total capital.
3. Debt-to-equity ratio:
The debt-to-equity ratio for Jetblue has also increased over the years, indicating a rising level of financial leverage. The ratio was at its lowest in 2019 at 0.49 and peaked in 2023 at 1.41. This progression suggests that the company has been increasingly reliant on debt to fund its operations compared to equity.
4. Financial leverage ratio:
Jetblue's financial leverage ratio, which measures the company's total debt to its equity, has shown a consistent upward trend from 2.48 in 2019 to 4.15 in 2023. This indicates that Jetblue's level of financial risk has been increasing over the years, as the company has been utilizing more debt to finance its operations.
In summary, the solvency ratios of Jetblue Airways Corp suggest a trend of increasing leverage and reliance on debt financing over the past five years. Investors and stakeholders should monitor these ratios closely to assess the company's ability to meet its financial obligations and manage its debt levels effectively.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -1.90 | -2.35 | -0.45 | -10.20 | 11.76 |
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting interest payments.
In the case of Jetblue Airways Corp, the interest coverage ratio has been fluctuating over the past five years. In 2019, the interest coverage ratio was 12.52, indicating a strong ability to meet interest payments. However, this ratio has been declining since then, dropping to -0.27 in 2023.
A negative interest coverage ratio, as seen in 2023, indicates that the company's operating income is insufficient to cover its interest expenses. This could raise concerns about the company's financial health and ability to service its debt obligations.
Overall, Jetblue Airways Corp's interest coverage has deteriorated significantly in recent years, highlighting potential challenges in meeting interest payments and managing its debt effectively.