PBF Energy Inc (PBF)

PBF Energy Inc's solvency ratios depict a positive trend over the years, indicating an improving financial position. The Debt-to-assets ratio has decreased steadily from 0.44 in 2020 to 0.11 in 2024, reflecting the company's ability to reduce its debt in proportion to its total assets. Similarly, the Debt-to-capital ratio exhibits a declining pattern from 0.74 in 2020 to 0.21 in 2024, highlighting a lower reliance on debt for funding its operations.

Moreover, the Debt-to-equity ratio demonstrates a substantial drop from 2.83 in 2020 to 0.26 in 2024, signifying a significant decrease in the level of debt compared to equity financing. This implies a stronger financial structure and reduced financial risk for the company. Additionally, the Financial leverage ratio has consistently decreased from 6.39 in 2020 to 2.29 in 2024, suggesting a decreasing dependence on borrowed funds to finance its operations.

Overall, the solvency ratios of PBF Energy Inc reflect an improving solvency position, with decreasing debt levels in relation to assets, capital, equity, and leverage over the years. This indicates a healthier financial standing and enhanced ability to meet its financial obligations in the long term.

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Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a greater ability to cover interest expenses.

Based on the data provided for PBF Energy Inc:
- As of December 31, 2020, the interest coverage ratio was -4.38, which implies that the company's operating profit was insufficient to cover its interest expenses and may indicate financial distress.
- By December 31, 2021, the interest coverage ratio improved to 1.77, suggesting a slight increase in the company's ability to meet its interest obligations.
- The ratio saw a significant improvement by December 31, 2022, reaching 15.07, indicating a much healthier financial position and improved ability to cover interest expenses.
- As of December 31, 2023, the interest coverage ratio further increased to 45.89, reflecting a robust improvement in the company's ability to service its debt.
- However, by December 31, 2024, the interest coverage ratio dropped to -9.59, which raises concerns about the company's ability to meet its interest obligations and may indicate financial difficulties.

Overall, PBF Energy Inc's interest coverage ratio has shown fluctuations over the years, with significant improvements in some periods and concerning declines in others. It is crucial for investors and stakeholders to closely monitor this ratio to assess the company's financial health and ability to manage its debt obligations effectively.