NewMarket Corporation (NEU)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.14 | 2.32 | 2.55 | 2.74 | 2.14 | 2.36 | 2.65 | 2.86 | 3.16 | 3.50 | 3.23 | 3.00 | 3.36 | 3.15 | 2.92 | 2.96 | 2.55 | 2.60 | 2.83 | 3.02 |
NewMarket Corporation's solvency ratios indicate a very strong financial position in terms of its ability to meet its long-term obligations with its available resources.
- The Debt-to-Assets ratio has consistently remained at 0.00 across all reporting periods, indicating that the company has no debt in relation to its total assets.
- The Debt-to-Capital ratio also shows a consistent 0.00 across all periods. This ratio signifies the proportion of debt in the company's capital structure, and NewMarket's zero values imply that the company relies primarily on equity financing.
- The Debt-to-Equity ratio, like the previous ratios, remains stable at 0.00 throughout the periods. This indicates that the company's total debt is non-existent concerning its equity, reflecting a low financial risk and strong shareholder protection.
- The Financial Leverage ratio, which measures the extent of a company's financial leverage, has shown fluctuations but remains relatively low. The trend has decreased over the reporting periods, suggesting a reduction in the company's reliance on debt to finance its operations.
Overall, based on these solvency ratios, NewMarket Corporation appears to have a solid financial foundation with minimal leverage and a conservative debt structure, positioning the company well to weather financial challenges and pursue growth opportunities.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 11.18 | 11.50 | 11.85 | 12.87 | 14.09 | 13.14 | 12.03 | 11.92 | 10.88 | 8.80 | 8.05 | 7.21 | 8.23 | 10.70 | 13.77 | 13.15 | 13.58 | 12.88 | 11.56 | 13.74 |
The interest coverage ratio for NewMarket Corporation has shown some fluctuations over the periods provided. The interest coverage ratio measures the company's ability to meet its interest obligations from its operating income. A higher ratio indicates a stronger ability to cover interest expenses.
From March 31, 2020, to December 31, 2022, NewMarket Corporation maintained a relatively stable and healthy interest coverage ratio ranging from around 7.21 to 13.77. However, starting from September 30, 2023, the interest coverage ratio declined to 10.88 and gradually decreased further to 11.18 by December 31, 2024.
The declining trend in the interest coverage ratio from September 30, 2023, to December 31, 2024 may raise concerns about the company's ability to cover its interest expenses efficiently. It is important for investors and stakeholders to monitor this ratio closely as a decreasing trend could indicate potential financial strain in meeting interest obligations.