JBTMarel Corp (JBTM)

The analysis of JBTMarel Corp’s solvency ratios over the period from December 31, 2020, to December 31, 2024, reveals the following insights:

1. Debt-to-assets ratio: Throughout the five-year span, this ratio consistently remains at 0.00. This indicates that the company has not reported any debt relative to its total assets, suggesting an absence of leverage and reliance on debt financing during this period.

2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, this measure also remains at 0.00 across all years. It reflects that the company’s capital structure does not incorporate debt, emphasizing a fully equity-funded stance.

3. Debt-to-equity ratio: Consistently recorded at 0.00, signifying that the company's liabilities are effectively zero in relation to its equity. This reinforces the interpretation that JBTMarel Corp operates with no long-term or short-term debt on its books.

4. Financial leverage ratio: The financial leverage ratio demonstrates variation over the observed years. It starts at approximately 2.83 in 2020, slightly increasing to about 2.85 in 2021, and further to 2.92 in 2022. There is a notable decrease to 1.82 in 2023 before rising again to approximately 2.21 in 2024. These fluctuations suggest changes in the extent of financial leverage employed, but overall, the ratios imply that the company’s capital structure either does not significantly depend on debt or that its debt levels are negligible or non-existent.

Summary:
The comprehensive data indicates that JBTMarel Corp has maintained an extremely conservative or debt-free capital structure throughout the years examined. The absence of debt-related ratios suggests that the company does not utilize leverage to finance its operations, which could imply a lower financial risk profile. The observed changes in the financial leverage ratio may be attributed to variations in other balance sheet components or changes in accounting treatment, but overall, the company’s solvency position appears robust due to the lack of leverage.

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Coverage ratios

The interest coverage ratio of JBTMarel Corp over the specified period demonstrates a declining trend, indicating a gradual reduction in the company's ability to meet interest obligations from its operating earnings.

At the end of December 2020, the interest coverage ratio was 11.47, suggesting the company earned approximately 11.47 times its interest expenses from its operating income. This high coverage indicates a comfortable buffer and strong capacity to service interest costs. In 2021, the ratio marginally increased to 11.67, reinforcing the robust interest coverage during that period.

However, a noticeable decline commenced in 2022, with the ratio decreasing to 8.36. Although still above typical considerable safety margins, this reduction indicates a weakening in operating earnings relative to interest expenses. The trend persisted into 2023, with the ratio further declining to 7.30, reflecting continued pressure on earnings capacity to cover interest obligations.

By 2024, the ratio contracted again, reaching 5.92. While still above a common threshold of 3.0–4.0, this lower figure suggests that the company's capacity to cover interest expenses has diminished significantly compared to earlier years, indicating increased financial risk if the decline persists or if operating conditions worsen.

Overall, the trajectory of JBTMarel Corp's interest coverage ratios suggests a gradual deterioration in earnings relative to interest obligations over the four-year span, highlighting potential emerging financial vulnerability and a need for careful monitoring of profitability and expense management in future periods.