Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Statement of Comprehensive Income
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Dividend Discount Model (DDM)
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
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Solvency Ratios (Summary)
Albemarle Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Debt to Equity Ratio
- The debt to equity ratio exhibited a gradually increasing trend from March 2018 (0.39) through December 2019 (0.78), peaking around December 2019 to June 2020 (approximately 0.84-0.88). Following this peak, a notable decrease took place from March 2021 (0.35) to March 2023 (0.35), with some minor fluctuations in between. Overall, this indicates a period of increased leverage until late 2019, followed by a deleveraging phase through 2023.
- Debt to Capital Ratio
- The debt to capital ratio followed a pattern similar to the debt to equity ratio, rising from 0.28 in March 2018 to a peak of about 0.46 around late 2019 to December 2020. A reduction trend began from March 2021 (0.26) continuing down to 0.26 in March 2023. This suggests the company initially increased its capital structure reliance on debt before effectively reducing it in the following years.
- Debt to Assets Ratio
- The debt to assets ratio also increased gradually from 0.20 in early 2018 to a peak of 0.35 during mid to late 2020. Afterward, the ratio steadily declined to 0.18 by March 2023. This movement aligns with the other leverage metrics, indicating an initial growth in debt usage relative to assets, followed by a decrease.
- Financial Leverage Ratio
- Financial leverage moved upward from 1.99 in March 2018 to reach about 2.54 by mid-2020, reflective of higher total asset usage relative to equity during this period. After this peak, leverage reduced to approximately 1.91 by March 2023, consistent with the decline in debt ratios, signaling reduced financial risk over time.
- Interest Coverage Ratio
- The interest coverage ratio data is only available from late 2018 onward. It initially showed high values peaking around 18.76 (June 2019) before a downward trend ensued, reaching lows near 4.73 by June and September 2021. Subsequently, a sharp rebound occurred with the ratio escalating to 37.07 by March 2023. This pattern indicates fluctuating ability to cover interest expenses, with significant improvement in recent quarters, likely reflecting enhanced earnings relative to interest obligations.
Debt Ratios
Coverage Ratios
Debt to Equity
Albemarle Corp., debt to equity calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Current portion of long-term debt | ||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total Albemarle Corporation shareholders’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||
| Linde plc | ||||||||||||||||||||||||||||
| Sherwin-Williams Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Debt to equity = Total debt ÷ Total Albemarle Corporation shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The total debt exhibited an overall increasing trend from March 31, 2018, through December 31, 2020, rising from approximately 1.48 billion US dollars to around 3.57 billion US dollars. A notable spike occurred in the fourth quarter of 2019, where debt surged significantly compared to previous quarters, reaching over 3 billion. Subsequently, total debt showed volatility but trended downward starting from March 31, 2021, with fluctuations before settling near 3.24 billion as of March 31, 2023.
Shareholders’ equity generally increased over the observed period. Beginning at about 3.8 billion US dollars in March 2018, equity rose steadily with minor fluctuations until December 2020, reaching over 4.26 billion. A significant increase occurred in 2021, where equity surged sharply to surpass 5.7 billion by the first quarter and continued advancing through 2022 and into early 2023, culminating at approximately 9.21 billion. This indicates substantial growth in company value and capital structure strengthening during the last two years.
The debt-to-equity ratio reflected these movements and reveals shifts in financial leverage. From 2018 through 2019, the ratio increased from 0.39 to a peak of approximately 0.88 in mid-2020, indicating rising leverage and reliance on debt financing relative to equity. However, beginning in 2021, a marked reduction in the debt-to-equity ratio occurred, falling to a low of around 0.33 by mid-2021. Following this period, the ratio rose again moderately but remained below the highs seen in 2020. By March 2023, the ratio decreased further to approximately 0.35, suggesting improved balance sheet strength and reduced relative debt burden.
Overall, the data reveal a considerable increase in shareholders’ equity alongside initial debt growth and later debt reduction. The leverage metrics suggest the company initially increased borrowing substantially but later focused on strengthening equity and managing debt levels, leading to improved financial stability and lower leverage ratios toward the end of the period.
- Total Debt
- Increased significantly from 2018 to late 2020, peaking over 3.5 billion, then showing a fluctuating but generally downward trend through early 2023.
- Shareholders’ Equity
- Expanded steadily with a pronounced acceleration beginning in 2021, nearly doubling from 2018 levels and reaching over 9 billion by early 2023.
- Debt to Equity Ratio
- Rose from under 0.5 in 2018 to a high of 0.88 in 2020, then declined sharply in 2021, stabilizing near 0.35 by the first quarter of 2023, indicating lowered financial leverage.
Debt to Capital
Albemarle Corp., debt to capital calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Current portion of long-term debt | ||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total Albemarle Corporation shareholders’ equity | ||||||||||||||||||||||||||||
| Total capital | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||
| Linde plc | ||||||||||||||||||||||||||||
| Sherwin-Williams Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt has exhibited a generally increasing trend from March 31, 2018, through December 31, 2020, rising from approximately 1.48 billion USD to over 3.57 billion USD. This represents a more than doubling of debt during this period. Subsequently, from March 31, 2021, the debt level decreased sharply to around 2.03 billion USD and fluctuated moderately thereafter. From June 30, 2022, total debt increased again, peaking near 3.46 billion USD in that quarter, before trending downward towards 3.24 billion USD by March 31, 2023.
- Total Capital
- Total capital showed a steady increase overall, starting at about 5.28 billion USD at the beginning of 2018 and climbing consistently to approximately 7.84 billion USD by December 31, 2020. After a minor dip in late 2021, the capital base rose significantly through 2022 and into early 2023, reaching about 12.45 billion USD. This reflects steady capital growth, with particularly notable acceleration following 2021.
- Debt to Capital Ratio
- The debt to capital ratio remained in the range of approximately 0.28–0.33 from early 2018 through mid-2019, followed by a sharp rise to between 0.44 and 0.47 through the end of 2020. This increase correlates with the debt spike observed during the same period. In 2021, the ratio declined significantly to around 0.25–0.26, indicating a reduction in leverage relative to capital. Through 2022 and into early 2023, the ratio experienced moderate fluctuations between 0.26 and 0.36 but showed a tendency to decrease again towards the end of the reported timeframe.
Debt to Assets
Albemarle Corp., debt to assets calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Current portion of long-term debt | ||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||
| Linde plc | ||||||||||||||||||||||||||||
| Sherwin-Williams Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
-
Total debt exhibited a general upward trajectory from March 2018 through December 2020, increasing from approximately $1.48 billion to $3.57 billion. This period included a notable spike in December 2019 and sustained high levels through 2020.
From March 2021 onward, total debt decreased sharply, falling to around $2.03 billion by March 2021, before fluctuating moderately in subsequent quarters. The debt then trended upward again, peaking near $3.46 billion in June 2022, followed by a gradual decline to approximately $3.24 billion by March 2023.
- Total Assets
-
Total assets remained relatively stable around $7.5–7.8 billion in early 2018 through mid-2019. Beginning in late 2019, there was a strong growth trend, with assets rising steadily every quarter from roughly $9.86 billion in December 2019 to $17.56 billion by March 2023.
This growth accelerated especially from mid-2021 onward, indicating an expansion phase or acquisition activity contributing to asset accumulation over the recent periods.
- Debt to Assets Ratio
-
The debt to assets ratio showed a marked increase from 0.20 in March 2018, peaking around 0.35 during mid to late 2020. This indicates that debt was growing faster than assets during this timeframe.
After reaching this peak, the ratio declined significantly to roughly 0.18 by March 2023, reflecting a stronger asset base relative to debt in the most recent periods. The decline suggests improved leverage management or asset growth outpacing debt increases following the 2020 peak.
- Summary of Trends and Insights
-
Overall, the data reflects a period of increasing leverage up until late 2020, characterized by rapid debt accumulation alongside growing assets. Post-2020, there is evidence of deleveraging or more prudent debt management, as the debt to assets ratio declines despite fluctuating total debt levels.
The significant and continuous growth in total assets through 2023 denotes enhanced investment or operational expansion, improving the company's asset base and financial strength. The reduction in leverage ratios post-peak suggests a potential strategic shift towards balancing growth with financial stability.
Financial Leverage
Albemarle Corp., financial leverage calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Total Albemarle Corporation shareholders’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Financial leverage1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||
| Linde plc | ||||||||||||||||||||||||||||
| Sherwin-Williams Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Financial leverage = Total assets ÷ Total Albemarle Corporation shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total assets
- Over the reviewed periods, total assets demonstrated a general upward trend. Starting from approximately 7.56 billion in early 2018, the value experienced moderate fluctuations and growth through 2019. Notably, from December 2019 onwards, total assets increased steadily, reaching over 17.56 billion by the end of the first quarter of 2023. This marked increase suggests continuous asset accumulation or valuation growth over the five-year horizon.
- Total Albemarle Corporation shareholders’ equity
- Shareholders’ equity exhibited fluctuations and a significant upward movement over the period. From a base of about 3.80 billion in March 2018, it declined slightly through the end of 2018 and the first half of 2020. A pronounced surge occurred starting late 2020, with equity increasing sharply to over 5.74 billion by the end of March 2021. Despite a minor decrease through late 2021, the equity base resumed growth and reached approximately 9.21 billion by the first quarter of 2023, indicating strengthened capital position.
- Financial leverage
- The financial leverage ratio generally hovered between 1.9 and 2.5 throughout the timeframe. Initially, leverage increased gradually from 1.99 in early 2018 to a peak around 2.54 by March 2020, reflecting a higher proportion of total assets financed by debt relative to equity. Following this peak, the ratio steadily declined to a low of 1.75 in mid-2021, coinciding with the sharp rise in shareholders’ equity. Subsequently, leverage ratios edged upward again but remained below the earlier peak, ending around 1.91 in the first quarter of 2023. This pattern suggests a period of deleveraging followed by moderate re-leveraging in recent quarters.
- Overall analysis
- The data indicates sustained asset growth accompanied by an evolving capital structure. The sharp increase in shareholders’ equity beginning in late 2020 appears to have contributed to a reduction in financial leverage, enhancing the company’s equity cushion. Despite some fluctuations, leverage ratios remained within a relatively narrow band, illustrating consistent management of debt levels relative to equity. The rising asset base coupled with strengthened equity suggests improved financial stability and capacity for future growth initiatives.
Interest Coverage
Albemarle Corp., interest coverage calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Net income (loss) attributable to Albemarle Corporation | ||||||||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | ||||||||||||||||||||||||||||
| Add: Income tax expense | ||||||||||||||||||||||||||||
| Add: Interest and financing expenses | ||||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Interest coverage1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||
| Sherwin-Williams Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Interest coverage
= (EBITQ1 2023
+ EBITQ4 2022
+ EBITQ3 2022
+ EBITQ2 2022)
÷ (Interest expenseQ1 2023
+ Interest expenseQ4 2022
+ Interest expenseQ3 2022
+ Interest expenseQ2 2022)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The data reveals significant fluctuations in earnings before interest and tax (EBIT) over the analyzed periods. Initially, EBIT experiences strong growth, peaking notably in June 2021 with a value exceeding 560 million US dollars. However, this is followed by a sharp decline in the subsequent quarter, resulting in a substantial negative EBIT near -484 million US dollars in September 2021. After this marked downturn, EBIT recovers and demonstrates a robust upward trajectory reaching its highest point in the most recent quarter of March 2023 surpassing 1.58 billion US dollars.
Interest and financing expenses show relative stability during the earlier periods, with values generally ranging between approximately 11 million and 22 million US dollars. Starting in 2021, these expenses become more volatile, with spikes occurring in March and June 2022, reaching approximately 28 million and 41 million US dollars respectively. Despite the fluctuations, interest expenses remain substantially lower than EBIT values in most quarters.
The interest coverage ratio, which measures the ability to service interest expenses from EBIT, exhibits a declining trend from March 2018 through June 2021. During this time, the ratio falls from a high range (approximately 17 to nearly 18 times coverage in early periods) down to levels under 5 times coverage in late 2021, reflecting weaker operational income relative to interest expenses. Thereafter, the ratio recovers strongly, reaching values above 20 in March 2022 and continuing to improve markedly to a peak of 37.07 in March 2023. This improvement corresponds with the recovery and growth in EBIT observed in the latter periods.
Overall, the trends indicate periods of volatility in core earnings with a pronounced downturn and recovery phase. Interest expenses, while fluctuating, do not increase proportionally to the substantial changes in EBIT, allowing the company to improve its capacity to cover interest payments significantly toward the end of the period. The data suggests enhanced financial stability and stronger earnings power in the most recent quarters.