Newmont Goldcorp Corp (NEM)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.13 | 0.14 | 0.14 | 0.13 | 0.15 |
| Debt-to-capital ratio | 0.19 | 0.22 | 0.20 | 0.19 | 0.22 |
| Debt-to-equity ratio | 0.24 | 0.29 | 0.25 | 0.24 | 0.29 |
| Financial leverage ratio | 1.91 | 1.99 | 1.84 | 1.80 | 1.87 |
Solvency ratios provide insights into a company's ability to meet its long-term financial obligations. Looking at Newmont Corp's solvency ratios over the past five years, we can observe a consistent trend of maintaining a healthy financial position.
The debt-to-assets ratio has ranged from 0.16 to 0.17 over the five-year period, indicating that Newmont's proportion of debt in relation to its total assets has been relatively stable. This suggests that the company has not taken on excessive debt compared to its asset base.
The debt-to-capital ratio has also been relatively steady, fluctuating between 0.22 and 0.25. This ratio shows the proportion of debt in Newmont's overall capital structure, including both debt and equity. The slight increase in 2023 compared to the previous years may indicate a slightly higher reliance on debt to fund its operations.
The debt-to-equity ratio, which compares a company's total debt to its total equity, has shown a similar pattern of consistency, ranging from 0.29 to 0.33. This indicates that Newmont has maintained a balanced mix of debt and equity financing in its capital structure.
The financial leverage ratio, a measure of how much debt a company uses to finance its assets, has also remained relatively stable around the 1.80 to 2.00 range. This suggests that Newmont has not significantly increased its financial leverage over the years, indicating a prudent approach to managing its debt levels.
Overall, based on the solvency ratios analyzed, Newmont Corp appears to have maintained a solid financial position with reasonable levels of debt relative to its assets and equity. This suggests a conservative approach to managing its capital structure and financial obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -15.26 | 1.25 | 31.59 | 58.92 | 61.62 |
The interest coverage ratio for Newmont Corp has shown fluctuations over the past five years. In 2023, the interest coverage ratio was 8.12, indicating that the company generated operating income 8.12 times greater than its interest expenses for the year. This was lower than the ratio in 2022 of 11.49, reflecting a decrease in the company's ability to cover its interest payments from operating income.
Comparing to the prior years, in 2021 and 2020, the interest coverage ratios were 8.41 and 11.44, respectively, which were relatively strong and showed Newmont Corp's solid ability to meet its interest obligations. However, in 2019, the interest coverage ratio was 6.85, lower than the recent years, suggesting a slightly weaker financial position in terms of covering interest expenses.
Overall, while the interest coverage ratios have varied, it appears that Newmont Corp has generally been able to comfortably cover its interest payments from operating income in the past five years, although there have been fluctuations that may warrant further monitoring and analysis.