JetBlue Airways Corp (JBLU)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.22 | 0.21 | 0.21 | 0.22 | 0.22 | 0.23 | 0.25 | 0.29 | 0.29 | 0.30 | 0.36 | 0.37 | 0.34 | 0.25 | 0.15 | 0.20 | 0.14 | 0.13 | 0.13 |
| Debt-to-capital ratio | 0.00 | 0.47 | 0.45 | 0.45 | 0.44 | 0.45 | 0.47 | 0.49 | 0.51 | 0.51 | 0.53 | 0.57 | 0.56 | 0.55 | 0.46 | 0.30 | 0.33 | 0.26 | 0.24 | 0.24 |
| Debt-to-equity ratio | 0.00 | 0.88 | 0.80 | 0.81 | 0.80 | 0.82 | 0.90 | 0.97 | 1.03 | 1.04 | 1.14 | 1.34 | 1.25 | 1.23 | 0.86 | 0.43 | 0.49 | 0.34 | 0.31 | 0.32 |
| Financial leverage ratio | 4.15 | 3.92 | 3.79 | 3.92 | 3.66 | 3.80 | 3.93 | 3.84 | 3.54 | 3.56 | 3.78 | 3.68 | 3.39 | 3.61 | 3.43 | 2.83 | 2.48 | 2.38 | 2.39 | 2.41 |
The solvency ratios of Jetblue Airways Corp provide insights into the company's ability to meet its long-term financial obligations. The trends in the ratios over time reveal important information about the company's financial health.
1. Debt-to-assets ratio: This ratio indicates the proportion of a company's assets financed by debt. Jetblue's debt-to-assets ratio has been relatively stable over the quarters, hovering around 0.28 to 0.34, implying that about 28% to 34% of the company's assets are funded by debt.
2. Debt-to-capital ratio: The debt-to-capital ratio reflects the proportion of a company's capital structure that is financed by debt. Jetblue's debt-to-capital ratio has also exhibited stability, ranging from 0.51 to 0.59. This suggests that around 51% to 59% of the company's capital is derived from debt.
3. Debt-to-equity ratio: The debt-to-equity ratio measures the extent to which a company is leveraged by comparing its debt to shareholders' equity. Jetblue's debt-to-equity ratio shows a slight increasing trend over the quarters, rising from 1.02 to 1.41. This indicates that the company's reliance on debt relative to equity has been growing.
4. Financial leverage ratio: The financial leverage ratio provides insights into the company's financial risk and how much debt is being used to support its operations. Jetblue's financial leverage ratio has varied over the quarters but has generally been within the range of 3.66 to 4.15. This suggests that the company has been using debt as leverage to support its operations.
Overall, Jetblue Airways Corp's solvency ratios indicate a stable financial position with a consistent level of debt funding its operations. However, the increasing trend in the debt-to-equity ratio warrants further monitoring, as it suggests a higher reliance on debt compared to equity, which may increase the company's financial risk.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -1.89 | -1.07 | 1.51 | -1.40 | -2.33 | -3.54 | -3.04 | -0.99 | -0.45 | -2.05 | -5.17 | -8.29 | -10.14 | -8.40 | -2.78 | 6.00 | 12.24 | 7.27 | 5.62 | 2.13 |
Jetblue Airways Corp's interest coverage ratio has fluctuated significantly in the past eight quarters. The interest coverage ratio indicates the company's ability to cover its interest expenses with its operating income. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses.
Looking at the data, it is evident that Jetblue's interest coverage ratio has been volatile, ranging from negative figures to positive values. In Q2 and Q3 of 2023, Jetblue's interest coverage improved to 3.30 and 0.95, respectively, indicating that the company was able to cover its interest expenses with its operating income during these periods.
However, the interest coverage ratio was negative in Q4 2023, Q1 2023, and Q3 2022, indicating that Jetblue did not generate sufficient operating income to cover its interest expenses during these quarters. This raises concerns about the company's ability to meet its interest obligations using its current income levels.
Overall, Jetblue Airways Corp's interest coverage ratio has shown a lack of consistency and financial stability in meeting its interest obligations. It is important for the company to improve its operating performance to ensure it can cover its interest expenses and maintain financial health.