Williams Companies Inc (WMB)

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	0.47	0.51	0.47	0.51	0.49	0.47	0.50	0.50	0.47	0.45	0.45	0.53	0.58	0.49	0.61	0.59	0.61	0.59	0.51	0.50
Debt-to-capital ratio	0.68	0.69	0.67	0.68	0.67	0.67	0.68	0.67	0.66	0.66	0.66	0.68	0.71	0.67	0.71	0.70	0.70	0.68	0.65	0.65
Debt-to-equity ratio	2.08	2.19	2.02	2.16	2.07	2.02	2.09	2.07	1.96	1.94	1.92	2.15	2.43	2.00	2.40	2.29	2.30	2.15	1.88	1.82
Financial leverage ratio	4.39	4.33	4.26	4.24	4.24	4.29	4.20	4.15	4.22	4.30	4.24	4.07	4.17	4.11	3.95	3.87	3.75	3.67	3.71	3.61

The solvency of Williams Companies Inc, as indicated by its solvency ratios, shows some fluctuations over the period analyzed. The Debt-to-assets ratio, which measures the proportion of the company's assets financed by debt, has ranged from 0.45 to 0.61 during the period. It decreased to 0.45 by June 30, 2022, before gradually increasing to 0.51 by December 31, 2024.

The Debt-to-capital ratio, which indicates the proportion of the company's capital that is debt, was between 0.65 and 0.71 over the analyzed period. It peaked at 0.71 by December 31, 2021, before fluctuating between 0.66 and 0.69 towards the end of the period.

The Debt-to-equity ratio, portraying the company's level of debt relative to its equity, ranged from 1.82 to 2.43 throughout the period. It reached its highest point at 2.43 by December 31, 2021, indicating an increasing reliance on debt financing during that time.

The Financial leverage ratio, showing the extent of a company's financial leverage, was between 3.61 and 4.39 across the period. It peaked at 4.39 by December 31, 2024, suggesting a higher level of financial risk and leverage for the company towards the end of the period.

Overall, the solvency ratios of Williams Companies Inc demonstrate varying levels of debt usage and financial leverage over the analyzed period, which may signify changing financial risk and capital structure considerations for the company.

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	2.69	3.49	3.79	3.94	4.39	3.99	3.94	3.76	3.16	3.05	2.64	2.67	2.72	2.17	2.35	2.35	1.25	1.28	1.18	1.17

The interest coverage ratio measures a company's ability to meet its interest obligations on its debt. It is calculated by dividing the earnings before interest and taxes (EBIT) by the interest expenses. A higher ratio indicates a stronger ability to cover interest payments.

Analyzing the interest coverage ratios of Williams Companies Inc from March 31, 2020, to December 31, 2024, we observe a fluctuating trend. The ratio ranged from a low of 1.17 in March 2020 to a high of 4.39 in December 2023. Generally, an interest coverage ratio below 2 is considered concerning as it may indicate potential difficulties in meeting interest payments.

Williams Companies Inc's interest coverage ratios gradually improved from 2020 to 2023, signaling better earnings relative to interest expenses. However, a slight decline was seen in the ratios during 2024, which could warrant further monitoring to ensure the company's ability to service its debt remains adequate.

Overall, Williams Companies Inc has demonstrated an improving ability to cover interest expenses over the years, with ratios reaching a comfortable level in recent periods. It is essential for investors and stakeholders to continue monitoring the interest coverage ratio to assess the company's financial health and debt repayment capabilities.