Molson Coors Brewing Co Class B (TAP)

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 0.20 0.20 0.23 0.24 0.24 0.23 0.24 0.24 0.24 0.24 0.23 0.26 0.26 0.25 0.28 0.28 0.28 0.28 0.28 0.28
Debt-to-capital ratio 0.29 0.29 0.32 0.33 0.33 0.32 0.33 0.33 0.33 0.33 0.34 0.36 0.37 0.35 0.38 0.39 0.38 0.38 0.38 0.38
Debt-to-equity ratio 0.40 0.40 0.48 0.49 0.49 0.46 0.49 0.49 0.50 0.50 0.52 0.57 0.58 0.53 0.62 0.63 0.60 0.61 0.61 0.62
Financial leverage ratio 2.00 2.01 2.06 2.04 2.04 2.03 2.05 2.05 2.06 2.08 2.20 2.16 2.21 2.12 2.20 2.24 2.15 2.18 2.16 2.19

Molson Coors Beverage Company's solvency ratios for the given period demonstrate a consistent trend. The debt-to-assets ratio has been relatively stable around 0.25, indicating that the company finances approximately 25% of its assets through debt over the past few quarters. This suggests that the company has a strong asset base relative to its debt levels.

The debt-to-capital ratio and debt-to-equity ratio have also shown stability, hovering around 0.34 and 0.50, respectively. These ratios indicate that Molson Coors Beverage Company relies on debt for approximately 34% of its capital structure and maintains a balanced mix of debt and equity in its financing structure, with equity covering around 50% of the capital.

The financial leverage ratio, which measures the proportion of assets financed by debt relative to equity, has remained close to 2.0 over the period. This implies that for each dollar of equity, the company has about $2 of debt, highlighting a moderate level of financial leverage.

Overall, Molson Coors Beverage Company's solvency ratios reflect a prudent approach to managing debt, with a consistent and balanced mix of debt and equity in its capital structure.

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 6.15 3.04 1.92 0.37 0.63 3.31 4.04 5.81 5.59 0.03 -0.06 -0.51 -1.49 4.29 1.59 1.63 2.72 2.12 4.48 4.76

Interest coverage measures a company's ability to meet its interest obligations on outstanding debt using its operating income. Molson Coors Beverage Company's interest coverage ratio has fluctuated over the past eight quarters. In Q4 2023, the company's interest coverage was 6.89, indicating that it was able to cover its interest expenses nearly seven times with its operating income. This ratio has improved compared to Q1 2023 when it was 3.91, suggesting better financial health.

Overall, Molson Coors' interest coverage has shown some variability, but it generally remained above 3.0, which is considered a minimum acceptable level by many analysts. The recent increase in the interest coverage ratio indicates an improving ability to cover interest payments, reflecting positively on the company's financial performance and stability in meeting its debt obligations. Further monitoring of this ratio will be important to assess the company's ongoing financial strength.