NewMarket Corporation (NEU)

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	0.28	0.34	0.39	0.41	0.42	0.43	0.39	0.37	0.31	0.41	0.40	0.41	0.31	0.32	0.38	0.38	0.34	0.38	0.40	0.44
Debt-to-capital ratio	0.37	0.45	0.51	0.54	0.57	0.60	0.56	0.53	0.51	0.56	0.54	0.55	0.44	0.46	0.52	0.54	0.48	0.52	0.55	0.59
Debt-to-equity ratio	0.60	0.80	1.03	1.17	1.32	1.51	1.26	1.11	1.04	1.28	1.17	1.22	0.79	0.84	1.09	1.16	0.94	1.07	1.20	1.46
Financial leverage ratio	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	2.76	2.81	3.00	3.34

The solvency ratios of NewMarket Corp. indicate the company's ability to meet its long-term financial obligations. Looking at the trend over the past eight quarters:

1. Debt-to-assets ratio: This ratio measures the proportion of the company's assets financed by debt. The ratio has been decreasing from 0.43 in Q4 2022 to 0.29 in Q4 2023, indicating that the company has been reducing its reliance on debt to fund its assets.

2. Debt-to-capital ratio: This ratio reflects the proportion of the company's capital structure that is financed by debt. The trend shows a decrease from 0.57 in Q4 2022 to 0.38 in Q4 2023, suggesting that the company is becoming less leveraged and relying more on equity financing.

3. Debt-to-equity ratio: This ratio indicates the extent to which the company's operations are financed by debt compared to equity. The ratio has decreased from 1.35 in Q4 2022 to 0.62 in Q4 2023, showing a positive trend towards a more balanced capital structure.

4. Financial leverage ratio: This ratio measures the company's total debt relative to its equity. The trend has been declining from 3.50 in Q3 2022 to 2.14 in Q4 2023, indicating that the company has been reducing its financial risk by decreasing its reliance on debt financing.

Overall, the solvency ratios of NewMarket Corp. have shown a positive trend over the past quarters, indicating a strengthening financial position and an improved ability to meet its long-term obligations.

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	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	12.34	11.87	10.98	10.80

NewMarket Corp.'s interest coverage has been consistently increasing over the past eight quarters, indicating a strong ability to meet interest obligations from its operating income. The interest coverage ratio has improved from 6.77 in Q1 2022 to 12.93 in Q4 2023, more than doubling over this period. This positive trend suggests that the company's earnings are more than sufficient to cover its interest expenses, reflecting a lower financial risk and enhanced financial stability. The company's ability to generate significant earnings relative to its interest costs is a favorable sign for creditors and investors, underlining NewMarket Corp.'s capability to service its debt obligations.