NewMarket Corporation (NEU)
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 | 2.14 | 2.14 | 3.16 | 3.36 | 2.55 |
NewMarket Corporation demonstrates a strong solvency position based on its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have consistently remained at 0.00 from 2020 to 2024. This indicates that the company has not relied on external debt to finance its assets or operations during this period.
The Financial leverage ratio, on the other hand, shows fluctuations over the years. The ratio was at 2.55 in 2020, increased to 3.36 in 2021, decreased to 3.16 in 2022, and further declined to 2.14 in both 2023 and 2024. These fluctuations suggest that while the company's leverage has varied, it has maintained a moderate level of financial leverage compared to its equity. Overall, the low debt ratios and the downward trend in the financial leverage ratio indicate a conservative capital structure and a healthy solvency position for NewMarket Corporation.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 11.18 | 12.93 | 10.88 | 8.23 | 12.48 |
NewMarket Corporation's interest coverage has been relatively stable over the past five years. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income. In 2020, the interest coverage ratio was 12.48, indicating that the company generated 12.48 times the operating income relative to its interest expenses.
However, there was a slight decrease in 2021, with the interest coverage ratio falling to 8.23. This could suggest that the company's operating income was not enough to cover its interest expenses as comfortably as in the previous year.
In 2022, the interest coverage ratio improved to 10.88, showing a better ability to meet its interest obligations from operating income. The ratio further increased in 2023 to 12.93, reaching a level higher than in 2020, indicating a strong ability to manage interest expenses.
In 2024, there was a slight decrease in the interest coverage ratio to 11.18, but it remained at a relatively healthy level compared to earlier years. Overall, NewMarket Corporation has maintained a reasonable interest coverage ratio over the past five years, with some fluctuations that suggest the company has managed its interest expenses effectively.