Visteon Corp (VC)
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 | 2.33 | 2.63 | 3.63 | 4.33 | 5.87 |
Visteon Corp's solvency ratios indicate a consistently strong financial position over the years. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00 from 2020 to 2024, suggesting that the company has no long-term debt relative to its assets, capital, or equity. This signifies a low level of financial risk and a high degree of financial stability.
Furthermore, the financial leverage ratio has exhibited a declining trend from 5.87 in 2020 to 2.33 in 2024. This decreasing trend shows that the company has reduced its reliance on debt to finance its operations and investments over the years. A lower financial leverage ratio indicates a stronger equity position and less financial risk for the company.
Overall, Visteon Corp's solvency ratios reflect a healthy financial profile with minimal debt obligations and a decreasing reliance on leverage, indicating a strong solvency position and stability in its financial structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 20.87 | 16.12 | 13.50 | 9.10 | -0.19 |
The interest coverage ratio for Visteon Corp has shown a significant improvement over the past few years. Starting at a negative figure of -0.19 on December 31, 2020, the company's ability to cover interest payments improved substantially, reaching 9.10 on December 31, 2021. This trend continued positively in the following years, with the interest coverage ratios for December 31, 2022, 2023, and 2024 standing at 13.50, 16.12, and 20.87, respectively.
The consistent increase in the interest coverage ratio indicates that Visteon Corp has enhanced its financial position and efficiency in meeting its interest obligations. A higher interest coverage ratio signifies that the company has more earnings available to cover interest expenses, reflecting improved financial health and reduced risk of default. Overall, the upward trend in Visteon Corp's interest coverage suggests a positive outlook for its ability to manage debt and meet its financial obligations.