Tootsie Roll Industries Inc (TR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.32 | 1.32 | 1.30 | 1.32 | 1.29 |
Tootsie Roll Industries Inc has consistently maintained a very strong solvency position, as indicated by its debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all being at 0% for the years 2020 to 2024. These ratios suggest that the company has not taken on any long-term debt relative to its total assets, capital, or equity during this period.
The financial leverage ratio, which measures the company's total assets relative to its equity, has ranged between 1.29 and 1.32 over the same period. This indicates that the company's assets are financed primarily through equity rather than debt.
Overall, the solvency ratios for Tootsie Roll Industries Inc show that the company has a conservative capital structure with minimal reliance on debt to finance its operations, thus indicating a strong financial position and stability in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 250.26 | 356.77 | 915.49 | 1,459.41 | 355.15 |
Tootsie Roll Industries Inc has exhibited strong interest coverage ratios in recent years, reflecting its ability to comfortably meet its interest obligations from its operating profits. The interest coverage ratio has shown a gradual increase from 355.15 in 2020 to 1,459.41 in 2021, indicating a significant improvement in the company's capacity to cover its interest expenses. This positive trend continued in 2022 with a ratio of 915.49, demonstrating continued financial strength.
However, in 2023, the interest coverage ratio decreased to 356.77, which could signal a slight decline in the company's ability to cover interest payments compared to the previous year. Nonetheless, the ratio remains relatively high, indicating that Tootsie Roll Industries Inc still has a strong ability to service its debt obligations.
In 2024, the interest coverage ratio declined further to 250.26. While this decrease may raise some concerns, it is important to note that the ratio still indicates a level of comfort in meeting interest expenses. Overall, Tootsie Roll Industries Inc has maintained robust interest coverage ratios in the past years, reflecting its efficient use of earnings to cover interest payments and suggesting a stable financial position.