Tootsie Roll Industries Inc (TR)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.32 | 1.32 | 1.31 | 1.31 | 1.32 | 1.33 | 1.32 | 1.29 | 1.30 | 1.31 | 1.30 | 1.32 | 1.32 | 1.34 | 1.32 | 1.29 | 1.29 | 1.29 | 1.29 | 1.27 |
Tootsie Roll Industries Inc has consistently maintained a strong solvency position based on the provided data for the period from March 31, 2020, to December 31, 2024. The company's debt-to-assets ratio has remained at 0.00 throughout this period, indicating that the company has no long-term debt in relation to its total assets.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also remained at 0.00 consistently, reflecting a debt-free capital structure with no financial leverage through long-term debt or equity financing. This demonstrates the company's ability to finance its operations and investments without relying on external debt or equity issuance.
The financial leverage ratio, which measures the extent of a company's financial leverage, has hovered around 1.29 to 1.34 during the period. This suggests that the company has a relatively low level of financial leverage, further reinforcing its conservative financial approach and minimal reliance on debt to fund its operations.
Overall, Tootsie Roll Industries Inc's solvency ratios indicate a sound financial position characterized by a lack of long-term debt, minimal financial leverage, and a strong ability to cover its financial obligations using internal resources.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 4.70 | 8.13 | 8.08 | 4.09 | 5.73 | 4.84 | 3.48 | 5.16 | 6.29 | 6.15 | 15.82 | 34,413.50 | — | — | — | — | 302.31 | 175.04 | 134.91 |
The interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt. It is calculated by dividing the earnings before interest and taxes (EBIT) by the interest expenses. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.
Based on the data provided for Tootsie Roll Industries Inc, the interest coverage ratios fluctuated significantly over the years. The interest coverage ratio was 134.91 as of March 31, 2020, indicating that the company's earnings were 134.91 times greater than its interest expenses at that time. This ratio increased to 175.04 as of June 30, 2020, and further improved to 302.31 as of September 30, 2020, showing a strong ability to cover interest payments during that period.
However, the interest coverage ratio was not available for the last three quarters of 2020 and the first three quarters of 2021. It dramatically increased to 34,413.50 as of December 31, 2021, which may be an anomaly due to the specific financial circumstances in that quarter. Subsequently, the interest coverage ratios dropped significantly in the following quarters, reaching the lowest point at 3.48 as of March 31, 2023.
The interest coverage ratios continued to vary throughout the subsequent quarters, with fluctuations between 3.48 and 8.13. The data suggests that Tootsie Roll Industries Inc may have experienced some challenges in maintaining consistent and strong interest coverage ratios during this period.
Overall, it is important for the company to monitor its interest coverage ratio closely to ensure it remains at a healthy level, allowing Tootsie Roll Industries Inc to meet its debt obligations and sustain financial stability.