Newmont Goldcorp Corp (NEM)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.87 | 1.91 | 1.99 | 1.84 | 1.80 |
Newmont Goldcorp Corp has consistently maintained a strong solvency position based on the solvency ratios provided.
1. Debt-to-assets ratio: The company has a debt-to-assets ratio of 0.00 for all the years from 2020 to 2024. This indicates that the company's total debt is very low in relation to its total assets, implying a low level of financial risk associated with its asset base.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio also stands at 0.00 for all the years, suggesting that the company's debt is negligible compared to its total capital, which includes both debt and equity. This signifies a healthy capital structure with a minimal reliance on debt financing.
3. Debt-to-equity ratio: The debt-to-equity ratio remains at 0.00 across all years, indicating that the company has no debt relative to its equity. This implies that the company is primarily financed by equity, reflecting a strong financial position and lower risk of default.
4. Financial leverage ratio: The financial leverage ratio, which measures the extent of a company's financing through debt, ranges from 1.80 to 1.99 over the years 2020 to 2024. While the ratio fluctuates slightly, it remains relatively stable and below 2, suggesting that the company's assets are financed mainly through equity rather than debt.
Overall, the solvency ratios indicate that Newmont Goldcorp Corp is in a solid financial position with minimal debt obligations, a healthy capital structure, and a low risk of financial distress.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 12.89 | -7.36 | 0.78 | 5.01 | 11.15 |
Newmont Goldcorp Corp's interest coverage ratio has exhibited significant fluctuations over the given period. As of December 31, 2020, the interest coverage ratio stood at a healthy 11.15, indicating the company's ability to cover its interest expenses comfortably. However, by December 31, 2021, the ratio declined to 5.01, suggesting a slight reduction in the company's ability to cover interest costs.
The interest coverage ratio witnessed a substantial decline by December 31, 2022, plummeting to a concerning 0.78. This sharp decrease may raise skepticism about the company's capability to meet its interest obligations from operating income. Moreover, the ratio turned negative as of December 31, 2023, reaching -7.36, signifying a scenario where the company's earnings were insufficient to cover its interest expenses, potentially indicating financial distress.
Nonetheless, there was a notable resurgence in the interest coverage ratio by December 31, 2024, reaching 12.89. This significant improvement suggests a strong recovery in the company's ability to cover its interest payments, showcasing better financial health compared to the previous years.
In summary, Newmont Goldcorp Corp exhibited varying levels of interest coverage over the analyzed period, with fluctuations that underscore the importance of closely monitoring the company's financial performance and its ability to service its debt obligations.