Sealed Air Corporation (SEE)
Solvency ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.01 | 0.65 | 0.02 | 0.02 |
| Debt-to-capital ratio | 0.04 | 0.07 | 0.07 | 0.08 | 0.06 | 0.10 | 0.11 | 0.12 | 0.09 | 0.17 | 0.20 | 0.20 | 0.13 | 0.52 | — | — | — | 1.09 | — | — |
| Debt-to-equity ratio | 0.04 | 0.07 | 0.07 | 0.08 | 0.07 | 0.11 | 0.13 | 0.14 | 0.10 | 0.20 | 0.26 | 0.24 | 0.14 | 1.08 | — | — | — | — | — | — |
| Financial leverage ratio | 13.10 | 18.04 | 18.25 | 21.23 | 18.06 | 27.84 | 30.57 | 32.13 | 25.05 | 48.24 | 64.04 | 58.37 | 35.27 | 237.89 | — | — | — | — | — | — |
Sealed Air Corp.'s solvency ratios provide insights into the company's ability to meet its long-term financial obligations and the extent to which its operations are financed by debt.
The debt-to-assets ratio has shown a slight upward trend from Q4 2022 to Q4 2023, indicating that the company's proportion of assets financed by debt has increased over this period. This ratio stood at around 0.65 to 0.66 in the latest quarters, suggesting that 65% to 66% of the company's assets are financed by debt.
The debt-to-capital ratio has also increased gradually from Q4 2022 to Q4 2023, indicating that the company is relying more on debt to finance its operations compared to its total capital. The ratio ranged from 0.90 to 0.93 in the latest quarters, highlighting that between 90% to 93% of the company's capital is sourced from debt.
The debt-to-equity ratio has exhibited significant fluctuations over the analyzed period, with a notable increase in Q1 2023 compared to the previous quarters. This fluctuation indicates varying levels of reliance on debt to fund operations relative to shareholders' equity. The ratio ranged from 8.54 to 19.43 in the analyzed quarters, suggesting that the company has shown different levels of leverage during this period.
The financial leverage ratio, which measures the company's total assets relative to equity, also displayed fluctuations with a general increasing trend from Q4 2022 to Q4 2023. This ratio increased from around 13.10 in Q4 2022 to about 21.23 in Q1 2023, showing that the company's assets are being funded increasingly by debt compared to equity.
Overall, the solvency ratios of Sealed Air Corp. reflect changing levels of reliance on debt to fund its operations and investments, highlighting the importance of monitoring these ratios to assess the company's financial stability and ability to meet its long-term obligations.
Coverage ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.64 | 3.07 | 3.87 | 4.40 | 5.50 | 6.08 | 5.83 | 5.74 | 5.36 | 4.87 | 4.84 | 4.76 | 4.70 | 4.20 | 3.78 | 3.24 | 2.84 | 2.88 | 3.03 | 3.59 |
Sealed Air Corp.'s interest coverage ratio has been fluctuating over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest payments using its operating income. A higher ratio indicates a greater ability to cover interest expenses.
Looking at the data provided, we can observe a downward trend in the interest coverage ratio over the quarters. In Q4 2023, the interest coverage ratio is 3.12, indicating a decline from the previous quarters. The ratio has decreased steadily from 5.86 in Q4 2022 to 3.12 in Q4 2023. This trend suggests that the company's operating income may not be covering its interest payments as comfortably as it did in previous quarters.
However, it is important to note that the interest coverage ratios across all quarters are still above 1, which implies that the company is generating enough operating income to cover its interest expenses. A ratio above 1 indicates that the company is able to meet its interest payments.
In conclusion, while Sealed Air Corp. has experienced a decreasing trend in its interest coverage ratio over the past eight quarters, the company still appears to have a sufficient ability to cover its interest expenses with its operating income. It is essential for investors and stakeholders to monitor this ratio closely to ensure the company's financial health and ability to meet its debt obligations.