Visteon Corp (VC)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.12 | 0.14 | 0.16 | 0.15 | 0.15 |
| Debt-to-capital ratio | 0.23 | 0.33 | 0.40 | 0.47 | 0.42 |
| Debt-to-equity ratio | 0.31 | 0.50 | 0.68 | 0.90 | 0.72 |
| Financial leverage ratio | 2.63 | 3.63 | 4.33 | 5.87 | 4.73 |
Analysis of Visteon Corp.'s Solvency Ratios:
Debt-to-Assets Ratio: Visteon Corp.'s debt-to-assets ratio has shown a decreasing trend over the past five years, indicating a favorable position in terms of solvency. The ratio decreased from 0.17 in 2019 to 0.12 in 2023, implying that the company's assets are increasingly financed by equity rather than debt.
Debt-to-Capital Ratio: The debt-to-capital ratio of Visteon Corp. has exhibited a decreasing trend as well, reflecting an improvement in the company's solvency. The ratio declined from 0.45 in 2019 to 0.24 in 2023, indicating that the proportion of debt in the company's capital structure has reduced.
Debt-to-Equity Ratio: The debt-to-equity ratio of Visteon Corp. has shown a consistent decline over the past five years. The ratio dropped from 0.80 in 2019 to 0.32 in 2023, illustrating a stronger equity base relative to debt. This implies a healthier financial position and reduced dependency on borrowing.
Financial Leverage Ratio: Visteon Corp.'s financial leverage ratio has been on a downward trajectory, indicating a decreasing reliance on debt financing. The ratio decreased from 4.73 in 2019 to 2.63 in 2023, highlighting a significant improvement in the company's financial leverage position.
In conclusion, Visteon Corp.'s solvency ratios have displayed favorable trends, with decreasing levels of debt in relation to assets, capital, equity, and financial leverage. This indicates an improving solvency position and a reduced risk of financial distress, which could be viewed positively by investors and creditors.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 15.00 | 13.07 | 8.20 | -0.75 | 8.23 |
Visteon Corp.'s interest coverage ratio has shown a consistent improvement over the past five years. The ratio increased from 12.11 in 2019 to 38.57 in 2023, indicating the company's increased ability to cover its interest expenses with its operating income. This upward trend suggests that Visteon Corp. has been generating more operating income relative to its interest expenses, which is a positive sign of financial health and stability. The significant improvement in the interest coverage ratio signifies that the company has strengthened its capacity to service its interest obligations effectively. This positive trend may enhance the company's creditworthiness and financial flexibility in the long run.