Sealed Air Corporation (SEE)
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 | 11.24 | 13.10 | 18.06 | 25.05 | 35.27 |
Sealed Air Corporation's solvency ratios indicate a strong financial position with consistently low levels of leverage over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 from December 31, 2020, to December 31, 2024, indicating that the company has no significant debt relative to its assets, capital, or equity.
Furthermore, the Financial leverage ratio has shown a decreasing trend, declining from 35.27 in 2020 to 11.24 in 2024. This indicates that Sealed Air Corporation has been steadily reducing its reliance on debt financing over the years, which is beneficial for its long-term financial stability.
Overall, the solvency ratios suggest that Sealed Air Corporation has a solid financial foundation with minimal debt levels and effective management of its leverage, positioning the company well to weather potential economic uncertainties and pursue growth opportunities.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.59 | 2.52 | 5.93 | 5.21 | 4.69 |
The interest coverage ratio measures Sealed Air Corporation's ability to meet its interest obligations on outstanding debt. From the data provided, we can see that the interest coverage ratio has generally been improving over the years, starting at 4.69 in December 31, 2020, and increasing to 5.21 in December 31, 2021, and further to 5.93 by December 31, 2022.
However, there was a notable decrease in the interest coverage ratio in the following years, dropping to 2.52 by December 31, 2023, and slightly increasing to 2.59 by December 31, 2024. This decline could indicate potential concerns regarding Sealed Air Corporation's ability to cover its interest payments comfortably with its operating income.
Overall, while the trend initially showed improvement in the company's ability to cover interest expenses, the recent decline underscores the importance of monitoring Sealed Air Corporation's financial performance and its ability to generate sufficient income to meet its interest obligations in the future.