PPG Industries Inc (PPG)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.86 | 2.76 | 3.15 | 3.40 | 3.44 |
The solvency ratios of PPG Industries Inc indicate a strong financial position in terms of the company's ability to meet its long-term obligations.
The Debt-to-assets ratio, which measures the proportion of a company's assets financed by debt, has consistently been at 0.00 over the past five years. This signifies that PPG has not relied heavily on debt to finance its assets, indicating a low risk of financial distress.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also maintained a stable 0.00 over the same period. This suggests that the company has a strong capital structure with a limited reliance on debt for funding its operations, giving it more financial flexibility and reducing the risk of insolvency.
The Financial leverage ratio provides insights into the proportion of a company's assets that are financed by debt compared to equity. While this ratio has shown a decreasing trend from 3.44 in 2020 to 2.86 in 2024, it still remains at a relatively high level. This indicates that PPG has a significant amount of debt relative to its equity, but the downward trend suggests an improvement in the company's leverage position over time.
Overall, based on these solvency ratios, PPG Industries Inc appears to have a strong financial position with a sound capital structure and a low level of debt, which bodes well for its long-term solvency and ability to weather economic uncertainties.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 8.68 | 8.09 | 10.86 | 16.23 | 11.07 |
The interest coverage ratio for PPG Industries Inc has shown fluctuations over the years. In 2020, the company had an interest coverage ratio of 11.07, indicating that it was able to cover its interest expenses 11.07 times over with its earnings before interest and taxes.
The ratio improved significantly in 2021 to 16.23, suggesting a stronger ability to service its interest obligations from its operating profits. However, in 2022, the ratio decreased to 10.86, indicating a slight decline in the company's ability to cover its interest payments.
In 2023, the interest coverage ratio further declined to 8.09, signaling potential challenges in meeting interest obligations solely from operating earnings. This trend continued in 2024, with the ratio at 8.68, showing a marginal improvement from the previous year but still below the levels seen in 2021.
Overall, the fluctuations in the interest coverage ratio of PPG Industries Inc over the years demonstrate the importance of monitoring the company's ability to meet its interest expenses and manage its debt obligations effectively. It is crucial for investors and stakeholders to assess these trends to understand the company's financial health and sustainability.