Sealed Air Corporation (SEE)

Sealed Air Corp.'s solvency ratios show a mixed trend over the past five years. The debt-to-assets ratio has fluctuated, showing an increasing trend from 0.59 in 2022 to 0.65 in 2023. This indicates that the company has taken on more debt relative to its total assets in 2023.

Similarly, the debt-to-capital ratio has shown fluctuations, with a slight decrease in 2023 compared to 2022. The decreasing trend from 0.91 in 2022 to 0.90 in 2023 suggests that the company has reduced its reliance on debt to finance its capital structure.

The debt-to-equity ratio has exhibited a decreasing trend since 2019, dropping from 21.80 in 2019 to 8.54 in 2023. This indicates that Sealed Air Corp. has been reducing its debt levels relative to equity over the years.

The financial leverage ratio, which indicates the proportion of the company's assets that are financed by debt, has also decreased over the past five years, from 35.27 in 2019 to 13.10 in 2023. This downward trend suggests that the company has been reducing its financial risk by relying less on debt to fund its operations.

Overall, the solvency ratios of Sealed Air Corp. show improvements in terms of lower debt levels relative to assets, capital, and equity, as well as reduced financial leverage over the past five years. However, careful monitoring is still advisable to ensure the company's continued financial stability.

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Coverage ratios

The interest coverage ratio for Sealed Air Corp. has fluctuated over the past five years, indicating the company's ability to service its interest obligations with its earnings. In 2023, the interest coverage ratio decreased to 3.12 from 5.86 in 2022, suggesting a decline in the company's ability to cover its interest payments with its operating income. Despite the decrease, the ratio still indicates that the company can meet its interest obligations comfortably.

Compared to the previous years, the interest coverage ratio in 2023 is lower than the ratios in 2021, 2020, and 2019, indicating a potential increase in the company's interest burdens relative to its earnings capacity. The declining trend in the interest coverage ratio should be monitored closely as it may signify potential financial challenges in servicing debt obligations in the future.

Overall, while the 2023 interest coverage ratio for Sealed Air Corp. has decreased, it remains within a reasonable range, indicating that the company is still able to cover its interest payments adequately with its operating income.