SunCoke Energy Inc (SXC)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.30 | 0.32 | 0.38 | 0.42 | 0.44 |
| Debt-to-capital ratio | 0.44 | 0.47 | 0.55 | 0.59 | 0.61 |
| Debt-to-equity ratio | 0.80 | 0.90 | 1.23 | 1.44 | 1.59 |
| Financial leverage ratio | 2.70 | 2.83 | 3.24 | 3.44 | 3.57 |
Solvency ratios help assess a company's ability to meet its long-term debt obligations. Looking at SunCoke Energy Inc's solvency ratios over the past five years, we observe a generally improving trend in its financial leverage and debt ratios.
The debt-to-assets ratio has been decreasing steadily from 0.45 in 2019 to 0.30 in 2023, indicating a more conservative approach to financing its operations. This implies that SunCoke Energy Inc's assets are increasingly financed by equity rather than debt.
Similarly, the debt-to-capital ratio has shown a declining trend from 0.61 in 2019 to 0.44 in 2023, reflecting a lower reliance on debt capital in funding its operations. This reduction suggests a strengthening financial position and improved ability to withstand financial shocks.
The debt-to-equity ratio has also shown a favorable downward trajectory, declining from 1.59 in 2019 to 0.80 in 2023. A decreasing debt-to-equity ratio indicates a lower level of debt relative to equity, which can signify improved financial health and reduced financial risk.
Finally, the financial leverage ratio has shown a consistent decrease from 3.57 in 2019 to 2.70 in 2023. This indicates that the company's reliance on debt to finance its operations has been decreasing, which is a positive sign of improved solvency and financial stability.
Overall, SunCoke Energy Inc's solvency ratios have exhibited positive trends over the years, suggesting a healthier balance sheet and improved capacity to meet its long-term debt obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 4.36 | 4.67 | 2.45 | 1.25 | -2.43 |
The interest coverage ratio for SunCoke Energy Inc has shown improvement over the past five years. In 2023, the interest coverage ratio was 4.58, indicating that the company generated 4.58 times more earnings before interest and taxes (EBIT) than it needed to cover its interest expense for that year. This represents a slight decline from the previous year's ratio of 4.80.
Looking back further, the company's interest coverage ratio increased significantly from 2019 to 2020, jumping from 1.71 to 1.24, showing a substantial improvement in its ability to meet interest obligations. However, the ratio has generally increased since then, suggesting a strengthening financial position in terms of servicing debt.
Overall, the trend in SunCoke Energy Inc's interest coverage ratio indicates a generally positive trajectory, with the company becoming more efficient in covering its interest expenses over the years. This trend reflects an improved capacity to fulfill debt obligations through operational earnings.