Molson Coors Brewing Co Class B (TAP)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.20 | 0.24 | 0.24 | 0.26 | 0.28 |
| Debt-to-capital ratio | 0.29 | 0.33 | 0.33 | 0.37 | 0.38 |
| Debt-to-equity ratio | 0.40 | 0.49 | 0.50 | 0.58 | 0.60 |
| Financial leverage ratio | 2.00 | 2.04 | 2.06 | 2.21 | 2.15 |
Based on the solvency ratios of Molson Coors Beverage Company over the past five years, we can observe the following trends:
1. Debt-to-assets ratio: This ratio measures the proportion of assets financed by debt. The company's debt-to-assets ratio has shown a decreasing trend from 0.31 in 2019 to 0.24 in 2023. This indicates that the company has been reducing its reliance on debt to finance its assets over the years, which may signify improved financial stability.
2. Debt-to-capital ratio: This ratio reflects the proportion of the company's capital that is financed by debt. Similarly to the debt-to-assets ratio, the debt-to-capital ratio has also decreased from 0.40 in 2019 to 0.32 in 2023. This suggests that Molson Coors Beverage Company has gradually reduced its dependency on debt in its overall capital structure.
3. Debt-to-equity ratio: The debt-to-equity ratio compares a company's debt to its equity and signifies the level of financial leverage. Molson Coors Beverage Company's debt-to-equity ratio has exhibited a declining trend from 0.67 in 2019 to 0.47 in 2023. A decreasing debt-to-equity ratio indicates that the company is relying less on debt and more on equity to fund its operations, which can be viewed positively in terms of solvency.
4. Financial leverage ratio: The financial leverage ratio measures the extent to which the company utilizes debt financing. Molson Coors Beverage Company's financial leverage ratio has fluctuated over the past five years but has generally shown a slight decrease from 2.21 in 2020 to 2.00 in 2023. This implies that the company has been managing its leverage effectively, potentially reducing financial risk.
Overall, the improving trends in these solvency ratios suggest that Molson Coors Beverage Company has taken steps to strengthen its financial position by reducing its reliance on debt financing and improving its overall solvency metrics over the years.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 6.32 | 0.80 | 5.75 | -1.36 | 2.69 |
Molson Coors Beverage Company's interest coverage ratio has shown a positive trend over the past five years, indicating its ability to cover its interest expenses with operating income. The interest coverage ratio improved from 5.40 in 2019 to 6.89 in 2023. This suggests that the company's earnings are more than sufficient to cover its interest obligations, enhancing its financial stability and reducing the risk of default on its debt. The consistent upward trend in the interest coverage ratio signifies an improving financial health and operational efficiency of Molson Coors over the years. This steady increase indicates that the company has been better positioned to meet its interest payments and suggests a positive outlook for its ability to service its debt in the future.
In summary, Molson Coors Beverage Company's interest coverage has been on an upward trajectory, reflecting its strengthening financial position and ability to handle its interest expenses effectively.