JBTMarel Corp (JBTM)

The analysis of JBTMarel Corp's solvency ratios over the period from September 2020 through June 2025 reveals a consistent trend of negligible or zero reported debt levels across the key ratios—namely, the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio—indicating that the company primarily maintains a debt-free capital structure during this timeframe. Specifically, the debt-to-assets ratio remains at 0.00 throughout all periods, implying that total liabilities are effectively nonexistent relative to total assets at each reporting date. Similarly, the debt-to-capital and debt-to-equity ratios are also zero consistently, further corroborating the absence of debt financing and suggesting an entirely equity-funded balance sheet structure.

The financial leverage ratio, however, exhibits variability over the same period, fluctuating between approximately 1.76 and 3.17. At the lowest point, around September 2023 and onwards, the ratio dips below 2.00, reaching as low as approximately 1.76 in late 2024, whereas earlier in the period, it commonly exceeds 2.8. This ratio indicates the degree of financial leverage employed relative to equity, and its variation suggests intermittent use of debt or other liabilities, despite the zero debt ratios reported in other metrics.

Given the uniformity of zero debt ratios, the observed fluctuations in the financial leverage ratio may result from other factors such as variations in total assets or equity attributable to retained earnings, valuation adjustments, or possibly the use of off-balance-sheet instruments not reflected directly in debt figures. Overall, the company's solvency ratios portray a predominantly unleveraged capital structure, emphasizing reliance on equity financing and minimal or no leverage, which can be associated with a low financial risk profile. The period also demonstrates stability in the company's approach to debt management, with no indication of increasing leverage or deteriorating debt-related solvency measures.

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Coverage ratios

The interest coverage ratio for JBTMarel Corp demonstrates significant fluctuations over the analyzed period. From September 30, 2020, through December 31, 2021, the ratio exhibits a consistent upward trend, peaking at 18.71 in September 2021, indicative of strong earnings relative to interest expenses during this interval. This suggests that the company maintained a healthy capacity to meet its interest obligations, with earnings comfortably exceeding interest costs.

However, starting in early 2022, a decline in the interest coverage ratio is observed, with the figure decreasing to 13.59 by September 30, 2022, and further down to 10.98 by December 31, 2022. This downward trajectory continues into 2023, with ratios falling to 7.75 on March 31, 2023 and further to 6.38 on June 30, 2023. The declining trend indicates a reduction in earnings relative to interest expenses, which may raise concerns about the company's ability to cover interest obligations comfortably.

The ratio remains relatively low into late 2023, registering at 6.08 on September 30, 2023. Subsequent data shows a modest recovery early in 2024, with the ratio increasing to 7.25 on March 31, 2024 and slightly improving to 7.97 by June 30, 2024.

However, by September 30, 2024, the ratio declines again to 9.00, before dropping sharply to 5.92 at year-end 2024. Notably, in the first quarter of 2025, the ratio turns negative at -1.65, indicating that earnings before interest and taxes (EBIT) are insufficient to cover interest expenses, suggesting a potential liquidity or profitability concern. This negative trend continues into June 2025, with the ratio at -0.98, further highlighting challenges in servicing interest.

Overall, the company's interest coverage ratio displays an initial period of strength and stability, followed by a pronounced decline that culminates in negative ratios, reflecting escalating difficulties in generating earnings adequate to cover interest costs. This pattern warrants close monitoring of the company's profitability and debt management strategies moving forward.