Owens Corning Inc (OC)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.36 | 0.23 | 0.28 | 0.30 | 0.33 |
| Debt-to-capital ratio | 0.50 | 0.34 | 0.40 | 0.41 | 0.44 |
| Debt-to-equity ratio | 1.01 | 0.51 | 0.65 | 0.69 | 0.80 |
| Financial leverage ratio | 2.77 | 2.18 | 2.35 | 2.33 | 2.43 |
Owens Corning Inc's solvency ratios have shown a mixed trend over the past five years. The Debt-to-assets ratio decreased from 0.33 in 2020 to 0.23 in 2023, indicating a reduction in the company's reliance on debt to finance its assets. However, there was a slight increase to 0.36 in 2024, which could indicate a higher level of debt relative to the company's assets that year.
The Debt-to-capital ratio followed a similar pattern, decreasing from 0.44 in 2020 to 0.34 in 2023 before rising to 0.50 in 2024. This suggests a fluctuation in the proportion of the company's capital structure funded by debt over the years.
The Debt-to-equity ratio decreased from 0.80 in 2020 to 0.51 in 2023, signaling a significant reduction in the company's debt relative to its equity. However, there was a substantial increase to 1.01 in 2024, indicating a higher level of debt in proportion to equity that year.
The Financial leverage ratio, which measures the company's financial risk, decreased from 2.43 in 2020 to 2.18 in 2023 before rising to 2.77 in 2024. This implies that the company's financial leverage decreased, then increased significantly over the period, signaling fluctuations in the company's overall financial risk profile.
In conclusion, while Owens Corning Inc has shown some improvement in its solvency ratios over the years, there has been a recent increase in debt levels relative to assets, capital, and equity in 2024, which may be a point of concern for investors and creditors.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 5.35 | 22.01 | 15.81 | 11.43 | -0.92 |
The interest coverage ratio for Owens Corning Inc shows a fluctuating trend over the period from December 31, 2020, to December 31, 2024.
In 2020, the interest coverage ratio was negative at -0.92, indicating that the company's operating income was insufficient to cover its interest expenses. However, there was a significant improvement in 2021, with the interest coverage ratio increasing to 11.43. This suggests that the company's ability to meet its interest obligations improved substantially during this period.
The trend continued positively in 2022 and 2023, with interest coverage ratios of 15.81 and 22.01, respectively. These higher ratios indicate that Owens Corning Inc had a comfortable margin of safety in meeting its interest payments from its operating income.
However, there was a notable decline in 2024, with the interest coverage ratio dropping to 5.35. While still above 1, indicating that the company was able to cover its interest payments, the lower ratio may raise concerns about the company's ability to service its debt obligations in the future.
Overall, the trend in Owens Corning Inc's interest coverage ratio reflects a mix of fluctuations and improvements, highlighting the importance of monitoring the company's operating performance and ability to service its debt obligations.