Owens Corning Inc (OC)

Owens Corning Inc's solvency ratios demonstrate a generally positive trend over the reporting periods. The debt-to-assets ratio has been gradually decreasing from 0.35 as of March 31, 2020, to 0.23 as of December 31, 2023, before experiencing a slight increase to 0.36 by the end of December 31, 2024. This indicates that the company's level of debt in relation to its total assets has been relatively stable but showed a slight uptick in the most recent period.

The debt-to-capital ratio also follows a similar pattern, declining from 0.48 on March 31, 2020, to 0.34 by December 31, 2023, with a subsequent increase to 0.50 by the end of December 31, 2024. This suggests that the company's reliance on debt to finance its operations has decreased over time but spiked at the end of the latest reporting period.

In terms of the debt-to-equity ratio, there was a consistent decline from 0.92 on March 31, 2020, to 0.51 by March 31, 2024, before rising again to 1.01 by December 31, 2024. The decreasing trend indicates a strengthening financial position in relation to the equity base, although the sharp increase in the most recent period may signal increased debt levels relative to equity.

Furthermore, the financial leverage ratio improved from 2.62 on March 31, 2020, to 2.16 by March 31, 2024, demonstrating a reduction in financial risk over time. However, the ratio surged to 2.77 by December 31, 2024, reflecting a temporary increase in leverage at the end of the reporting period.

Overall, the solvency ratios of Owens Corning Inc show a mixed picture, with improvements in certain ratios over time but with some fluctuations in the most recent period that may warrant further examination of the company's debt management strategies and overall financial health.

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Coverage ratios

Based on the provided data, Owens Corning Inc's interest coverage ratio has displayed significant fluctuations over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio indicates the company's ability to meet its interest obligations on its debt.

The interest coverage ratio started at a concerning level, below 0, in the first half of 2020, indicating that the company's operating income was insufficient to cover its interest expenses. This implies a higher risk of default on debt payments during that period.

However, there was a notable improvement in the interest coverage ratio from March 31, 2021, onwards, with the ratio consistently increasing over time. This trend indicates that Owens Corning Inc's operating income has improved significantly, allowing it to comfortably cover its interest expenses.

There are a few fluctuations in the interest coverage ratio between June 30, 2022, and December 31, 2023. While these fluctuations may suggest some variability in the company's financial performance, the overall trend remains positive, indicating a strengthened ability to pay interest expenses.

The interest coverage ratio peaked at 22.01 on December 31, 2023, suggesting a substantial improvement in the company's financial health. However, there was a noticeable decline in the ratio in the subsequent periods, dropping to 5.32 by December 31, 2024. This decrease may indicate a temporary setback in earnings relative to interest expenses.

In conclusion, the interest coverage ratio for Owens Corning Inc has shown a mix of fluctuations and improvements over the analyzed period, with an overall positive trend in recent years, suggesting a better ability to meet interest payments. However, the significant reduction in the ratio in the last quarter of 2024 may warrant further monitoring to assess the company's financial stability and ability to manage its debt obligations effectively.