Tootsie Roll Industries Inc (TR)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Debt-to-capital ratio | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Debt-to-equity ratio | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Financial leverage ratio | 1.32 | 1.30 | 1.32 | 1.29 | 1.29 |
Tootsie Roll Industries, Inc. has consistently maintained a very low level of indebtedness relative to its assets, capital, and equity over the past five years, with the debt-to-assets, debt-to-capital, and debt-to-equity ratios all remaining at 0.01 each year. This indicates that the company relies minimally on debt financing to support its operations and expansion.
The financial leverage ratio, which measures the extent to which a company relies on debt financing, has shown some variation over the period. In 2023, the financial leverage ratio increased to 1.32 from 1.30 in 2022, indicating a slight increase in the company's reliance on debt to finance its operations. However, the ratio has remained relatively stable over the years, ranging between 1.29 and 1.32.
Overall, Tootsie Roll Industries, Inc. exhibits strong solvency and financial stability as evidenced by its extremely low debt levels and consistent financial leverage ratio. This suggests that the company has a conservative financial structure and is not heavily exposed to financial risks associated with high levels of debt.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 356.85 | 945.10 | 1,865.07 | 466.14 | 389.57 |
Unfortunately, without the specific values for interest coverage provided in the table, a detailed analysis of Tootsie Roll Industries, Inc.'s interest coverage over the years cannot be conducted. The interest coverage ratio is a critical financial metric that indicates a company's ability to meet its interest obligations based on its earnings. A higher interest coverage ratio signifies a greater ability to meet interest payments, indicating a lower financial risk. Conversely, a lower interest coverage ratio may suggest potential difficulties in meeting interest obligations. To perform a comprehensive analysis, actual values for the interest coverage ratio for each year would be necessary.