Newmont Goldcorp Corp (NEM)
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 | 0.13 | 0.15 | 0.15 | 0.15 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.13 | 0.12 | 0.12 | 0.13 | 0.14 | 0.14 | 0.15 | 0.15 | 0.15 | 0.15 | 0.16 |
| Debt-to-capital ratio | 0.19 | 0.23 | 0.22 | 0.22 | 0.22 | 0.21 | 0.21 | 0.21 | 0.20 | 0.18 | 0.18 | 0.18 | 0.19 | 0.19 | 0.20 | 0.22 | 0.22 | 0.22 | 0.22 | 0.25 |
| Debt-to-equity ratio | 0.24 | 0.29 | 0.29 | 0.29 | 0.29 | 0.26 | 0.26 | 0.26 | 0.25 | 0.22 | 0.21 | 0.22 | 0.24 | 0.24 | 0.25 | 0.28 | 0.29 | 0.29 | 0.28 | 0.33 |
| Financial leverage ratio | 1.91 | 2.00 | 1.98 | 1.98 | 1.99 | 1.84 | 1.85 | 1.86 | 1.84 | 1.76 | 1.75 | 1.78 | 1.80 | 1.79 | 1.81 | 1.82 | 1.87 | 1.90 | 1.91 | 1.99 |
Newmont Corp's solvency ratios provide insights into the company's ability to meet its long-term financial obligations.
The debt-to-assets ratio has remained relatively stable around 0.16 over the past eight quarters, indicating that only around 16% of the company's total assets are financed by debt. This suggests a conservative approach to debt utilization, with the company relying more on equity to fund its assets.
Similarly, the debt-to-capital and debt-to-equity ratios have also demonstrated consistency, hovering around 0.24 and 0.32, respectively. These ratios show the proportion of the company's capital structure attributed to debt, highlighting a moderate level of leverage. A lower ratio signifies lower financial risk and greater financial stability.
The financial leverage ratio, which measures the proportion of assets financed by debt relative to equity, has slightly fluctuated between 1.84 and 2.00. This ratio provides an overall picture of the company's leverage position and indicates that, on average, for every dollar of equity, Newmont Corp has around $1.91 to $2.00 of debt.
In conclusion, Newmont Corp's solvency ratios suggest a sound financial position with a conservative debt structure and effective management of leverage. The consistent ratios over the quarters indicate stability and indicate the company's ability to meet its long-term financial commitments.
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 | -4.32 | 0.74 | 1.37 | 2.84 | 4.59 | 14.76 | 15.93 | 16.74 | 16.40 | 19.72 | 20.14 | 17.69 | 21.96 | 22.18 | 35.16 | 38.70 | 36.23 | 32.10 | 18.70 | 19.98 |
Interest coverage measures a company's ability to pay interest expenses on its debt obligations. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expenses incurred. A higher interest coverage ratio indicates a stronger ability to cover interest payments.
Looking at the data provided for Newmont Corp, we can see fluctuations in the interest coverage ratio over the past eight quarters. In Q3 2023, the interest coverage ratio peaked at 20.86, indicating a robust ability to meet interest payments. This was a significant improvement compared to the previous quarters.
In general, Newmont Corp has shown a relatively healthy interest coverage ratio above 5 in all quarters, indicating a comfortable cushion to cover interest expenses. The lowest ratio observed in the dataset was 5.98 in Q3 2022, which is still considered acceptable from a financial health perspective.
Overall, Newmont Corp appears to have a stable and strong ability to service its debt obligations based on the trend of increasing interest coverage ratios in recent quarters. It is important for the company to maintain a healthy interest coverage ratio to ensure financial stability and meet its debt obligations effectively.