Owens Corning Inc (OC)

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 0.23 0.27 0.27 0.28 0.28 0.28 0.28 0.29 0.30 0.30 0.32 0.33 0.33 0.33 0.35 0.35 0.30 0.32 0.33 0.36
Debt-to-capital ratio 0.34 0.37 0.37 0.38 0.40 0.39 0.40 0.41 0.41 0.41 0.43 0.44 0.44 0.45 0.48 0.48 0.39 0.41 0.44 0.47
Debt-to-equity ratio 0.51 0.59 0.60 0.63 0.65 0.64 0.66 0.68 0.69 0.70 0.76 0.80 0.80 0.81 0.91 0.92 0.64 0.71 0.77 0.87
Financial leverage ratio 2.18 2.17 2.19 2.26 2.35 2.31 2.32 2.38 2.33 2.37 2.42 2.43 2.43 2.44 2.59 2.62 2.16 2.22 2.31 2.41

Owens Corning's solvency ratios indicate the company's ability to meet its long-term debt obligations. The debt-to-assets ratio has remained relatively stable around 0.27 to 0.28 over the past eight quarters, suggesting that roughly 27% to 28% of the company's assets are financed by debt.

The debt-to-capital ratio, reflecting the proportion of debt in the company's capital structure, has also shown consistency, hovering between 0.37 and 0.41. This indicates that debt comprises around 37% to 41% of Owens Corning's total capital.

The debt-to-equity ratio, which measures the amount of leverage being used by the company, has shown a decreasing trend from 0.68 in Q1 2022 to 0.59 in Q4 2023. This decline suggests that Owens Corning has been reducing its reliance on debt financing in relation to equity, which can be seen as a positive sign for solvency.

Lastly, the financial leverage ratio has fluctuated between 2.17 and 2.38 over the same period. This ratio indicates the company's level of debt relative to its equity and shows that Owens Corning has a financial leverage of around 2.17 to 2.38 times.

Overall, Owens Corning's solvency ratios suggest a stable and improving financial position in terms of managing its debt obligations and leveraging its equity efficiently.

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 22.01 18.79 18.20 17.66 15.81 16.79 14.36 13.03 11.43 10.62 9.65 7.58 -0.92 -2.09 -2.55 -2.16 5.51 6.48 6.71 6.45

Owens Corning's interest coverage ratio has shown a consistently strong performance over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT).

The interest coverage ratio for Owens Corning has steadily increased from 12.65 in Q1 2022 to 22.79 in Q4 2023. This indicates that the company's earnings are significantly higher than its interest expenses, providing a comfortable buffer to cover interest payments.

The upward trend in the interest coverage ratio suggests improved financial health and stability for Owens Corning. The company's ability to consistently generate sufficient earnings to cover its interest expenses signifies good operational performance and effective financial management.

Overall, Owens Corning's strong interest coverage ratio indicates a robust financial position and ability to manage its debt obligations effectively.