Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Corning Inc., solvency ratios
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Debt to Equity
- The debt to equity ratio remained relatively stable between 2019 and 2022, fluctuating slightly from 0.6 to 0.57-0.58. However, in 2023, it increased noticeably to 0.65, indicating a higher reliance on debt financing relative to equity in the most recent year.
- Debt to Equity (including operating lease liability)
- This ratio follows a similar trend to the standard debt to equity ratio but is consistently higher, reflecting the inclusion of operating lease liabilities. It showed a slight increase over the period, rising from 0.64 in 2019 to 0.73 in 2023, suggesting an increasing impact of lease liabilities on the company’s financial leverage.
- Debt to Capital
- The debt to capital ratio was steady, dwelling around 0.36 to 0.38 from 2019 to 2023, with a minor rise to 0.39 in the latest year. This indicates that the proportion of debt relative to total capital has remained generally constant, with a slight increase towards 2023.
- Debt to Capital (including operating lease liability)
- This ratio also reveals a modest upward trend, moving from 0.39 in 2019 to 0.42 in 2023. This points to a growing weight of total debt including lease liabilities within the company’s capital structure.
- Debt to Assets
- Debt to assets decreased from 0.27 in 2019 to 0.23 in 2021 and 2022, indicating a reduction in debt relative to total assets during these years. In 2023, the ratio rose again to 0.26, suggesting a slight increase in debt levels compared to assets.
- Debt to Assets (including operating lease liability)
- Including operating lease liabilities, this ratio shows a similar pattern, decreasing from 0.29 in 2019 to 0.26 during 2021 and 2022, then increasing to 0.3 in 2023. The higher values compared to the standard ratio highlight the significance of lease liabilities on the asset base.
- Financial Leverage
- Financial leverage steadily increased over the five-year period, from 2.24 in 2019 to 2.47 in 2023. This indicates a consistent rise in the use of debt relative to equity to finance assets, reflecting a growing leverage strategy.
- Interest Coverage
- Interest coverage ratio experienced significant fluctuations. It dropped sharply from 6.59 in 2019 to 3.3 in 2020, surged to 9.09 in 2021, then declined again to 7.15 in 2022 and further to 3.48 in 2023. This volatility suggests variability in earnings relative to interest expenses, with potential concerns about the company’s ability to cover financing costs adequately in some years.
- Fixed Charge Coverage
- The fixed charge coverage ratio also showed variability, decreasing from 3.44 in 2019 to below 2 in 2020 and 2021. It spiked to 5.09 in 2022 before falling to 2.63 in 2023. These movements indicate inconsistent capability to meet fixed financial obligations other than interest, highlighting possible operational or financial challenges during the period.
Debt Ratios
Coverage Ratios
Debt to Equity
Corning Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt and short-term borrowings | 320) | 224) | 55) | 156) | 11) | |
| Long-term debt, excluding current portion | 7,206) | 6,687) | 6,989) | 7,816) | 7,729) | |
| Total debt | 7,526) | 6,911) | 7,044) | 7,972) | 7,740) | |
| Total Corning Incorporated shareholders’ equity | 11,551) | 12,008) | 12,333) | 13,257) | 12,907) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.65 | 0.58 | 0.57 | 0.60 | 0.60 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Apple Inc. | 1.80 | 2.39 | 1.99 | 1.73 | 1.19 | |
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Cisco Systems Inc. | 0.19 | 0.24 | 0.28 | 0.38 | 0.73 | |
| Dell Technologies Inc. | — | — | 19.36 | — | — | |
| Super Micro Computer Inc. | 0.15 | 0.42 | 0.09 | 0.03 | 0.03 | |
| Debt to Equity, Sector | ||||||
| Technology Hardware & Equipment | 1.34 | 1.66 | 1.65 | 1.69 | — | |
| Debt to Equity, Industry | ||||||
| Information Technology | 0.66 | 0.71 | 0.83 | 0.97 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity = Total debt ÷ Total Corning Incorporated shareholders’ equity
= 7,526 ÷ 11,551 = 0.65
2 Click competitor name to see calculations.
- Total Debt
- The total debt showed a general fluctuation over the five-year period. It increased slightly from US$7,740 million at the end of 2019 to US$7,972 million in 2020. Following this, there was a notable decrease to US$7,044 million in 2021 and a further decline to US$6,911 million in 2022. However, in 2023, total debt rose again to US$7,526 million, indicating a partial recovery but still below the 2020 peak.
- Total Shareholders’ Equity
- Shareholders’ equity demonstrated a declining trend over the years. Starting from US$12,907 million in 2019, it increased slightly to US$13,257 million in 2020 but then exhibited a continuous downward movement reaching US$12,333 million in 2021, US$12,008 million in 2022, and US$11,551 million in 2023. This consistent decrease suggests a reduction in the company’s net assets attributable to shareholders.
- Debt to Equity Ratio
- The debt to equity ratio remained relatively stable between 2019 and 2022, fluctuating between 0.57 and 0.6. It started at 0.6 in 2019, held steady at 0.6 in 2020, decreased slightly to 0.57 in 2021, then increased marginally to 0.58 in 2022. In 2023, however, the ratio rose more noticeably to 0.65, reflecting the combined effect of rising debt and declining equity, indicating an increased leverage position.
Debt to Equity (including Operating Lease Liability)
Corning Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt and short-term borrowings | 320) | 224) | 55) | 156) | 11) | |
| Long-term debt, excluding current portion | 7,206) | 6,687) | 6,989) | 7,816) | 7,729) | |
| Total debt | 7,526) | 6,911) | 7,044) | 7,972) | 7,740) | |
| Short-term operating lease liabilities | 112) | 111) | 94) | 96) | 62) | |
| Long-term operating lease liabilities | 846) | 795) | 691) | 633) | 450) | |
| Total debt (including operating lease liability) | 8,484) | 7,817) | 7,829) | 8,701) | 8,252) | |
| Total Corning Incorporated shareholders’ equity | 11,551) | 12,008) | 12,333) | 13,257) | 12,907) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.73 | 0.65 | 0.63 | 0.66 | 0.64 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Apple Inc. | 1.99 | 2.61 | 2.16 | 1.87 | 1.19 | |
| Arista Networks Inc. | 0.01 | 0.01 | 0.02 | 0.03 | — | |
| Cisco Systems Inc. | 0.21 | 0.27 | 0.31 | 0.41 | 0.73 | |
| Dell Technologies Inc. | — | — | 20.25 | — | — | |
| Super Micro Computer Inc. | 0.16 | 0.44 | 0.11 | 0.05 | 0.03 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Technology Hardware & Equipment | 1.46 | 1.81 | 1.78 | 1.81 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.73 | 0.77 | 0.91 | 1.04 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Corning Incorporated shareholders’ equity
= 8,484 ÷ 11,551 = 0.73
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt shows a fluctuating pattern over the five-year period. It initially increased from 8,252 million USD in 2019 to 8,701 million USD in 2020. Subsequently, it decreased to 7,829 million USD in 2021 and remained relatively stable around 7,817 million USD in 2022. In 2023, total debt rose again to 8,484 million USD. This indicates variability in the company's leverage and possibly reflects responses to changing financing needs or market conditions.
- Total Corning Incorporated shareholders’ equity
- Shareholders’ equity has shown a consistent decline over the period. Beginning at 12,907 million USD in 2019, it increased slightly to 13,257 million USD in 2020, then declined steadily each year thereafter to 12,333 million USD in 2021, 12,008 million USD in 2022, and finally 11,551 million USD in 2023. This downward trend suggests a reduction in net assets attributable to shareholders, possibly due to factors such as retained earnings erosion, dividend payouts exceeding net profits, or treasury stock transactions.
- Debt to equity (including operating lease liability)
- The debt-to-equity ratio remained relatively stable from 2019 to 2022, fluctuating narrowly between 0.63 and 0.66. However, there was a notable increase in 2023 to 0.73. This rising ratio reflects increasing leverage and indicates that, relative to equity, the company's debt level has grown. The change in this ratio is consistent with the observed decrease in equity and the rise in debt in 2023, highlighting a potential increase in financial risk.
Debt to Capital
Corning Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt and short-term borrowings | 320) | 224) | 55) | 156) | 11) | |
| Long-term debt, excluding current portion | 7,206) | 6,687) | 6,989) | 7,816) | 7,729) | |
| Total debt | 7,526) | 6,911) | 7,044) | 7,972) | 7,740) | |
| Total Corning Incorporated shareholders’ equity | 11,551) | 12,008) | 12,333) | 13,257) | 12,907) | |
| Total capital | 19,077) | 18,919) | 19,377) | 21,229) | 20,647) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.39 | 0.37 | 0.36 | 0.38 | 0.37 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Apple Inc. | 0.64 | 0.70 | 0.67 | 0.63 | 0.54 | |
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Cisco Systems Inc. | 0.16 | 0.19 | 0.22 | 0.28 | 0.42 | |
| Dell Technologies Inc. | 1.12 | 1.07 | 0.95 | 1.03 | — | |
| Super Micro Computer Inc. | 0.13 | 0.30 | 0.08 | 0.03 | 0.02 | |
| Debt to Capital, Sector | ||||||
| Technology Hardware & Equipment | 0.57 | 0.62 | 0.62 | 0.63 | — | |
| Debt to Capital, Industry | ||||||
| Information Technology | 0.40 | 0.41 | 0.45 | 0.49 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 7,526 ÷ 19,077 = 0.39
2 Click competitor name to see calculations.
The financial data reveals trends in the company's debt and capital structure over the five-year period ending December 31, 2023. These trends provide insights into the company's leverage and capital management strategies.
- Total Debt
- The total debt showed fluctuations during the period. Starting at US$7,740 million in 2019, it increased slightly to US$7,972 million in 2020, then declined to US$7,044 million in 2021 and further to US$6,911 million in 2022. However, in 2023, total debt rose again to US$7,526 million. This pattern suggests some variability in the company's borrowing or debt repayment activities over the years.
- Total Capital
- Total capital exhibited a downward trend overall. It decreased from US$20,647 million in 2019 to US$18,919 million in 2022, with a slight recovery to US$19,077 million in 2023. The decline over most of the period indicates a reduction in the combined equity and debt financing, with a modest rebound in the latest year observed.
- Debt to Capital Ratio
- The debt to capital ratio remained relatively stable, fluctuating narrowly between 0.36 and 0.39. It was 0.37 in 2019, increased slightly to 0.38 in 2020, dropped to 0.36 in 2021, returned to 0.37 in 2022, and rose again to 0.39 in 2023. This stability suggests consistent leverage levels despite changes in absolute amounts of debt and capital.
Overall, the data indicates the company maintained a consistent debt leverage ratio throughout the period, even though the total amounts of debt and capital changed. The recent increase in total debt combined with a modest rise in total capital led to a slight uptick in the debt to capital ratio in 2023. This approach could reflect a balanced strategy to manage financing sources while controlling leverage risk.
Debt to Capital (including Operating Lease Liability)
Corning Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt and short-term borrowings | 320) | 224) | 55) | 156) | 11) | |
| Long-term debt, excluding current portion | 7,206) | 6,687) | 6,989) | 7,816) | 7,729) | |
| Total debt | 7,526) | 6,911) | 7,044) | 7,972) | 7,740) | |
| Short-term operating lease liabilities | 112) | 111) | 94) | 96) | 62) | |
| Long-term operating lease liabilities | 846) | 795) | 691) | 633) | 450) | |
| Total debt (including operating lease liability) | 8,484) | 7,817) | 7,829) | 8,701) | 8,252) | |
| Total Corning Incorporated shareholders’ equity | 11,551) | 12,008) | 12,333) | 13,257) | 12,907) | |
| Total capital (including operating lease liability) | 20,035) | 19,825) | 20,162) | 21,958) | 21,159) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.42 | 0.39 | 0.39 | 0.40 | 0.39 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Apple Inc. | 0.67 | 0.72 | 0.68 | 0.65 | 0.54 | |
| Arista Networks Inc. | 0.01 | 0.01 | 0.02 | 0.03 | — | |
| Cisco Systems Inc. | 0.18 | 0.21 | 0.24 | 0.29 | 0.42 | |
| Dell Technologies Inc. | 1.11 | 1.06 | 0.95 | 1.03 | — | |
| Super Micro Computer Inc. | 0.14 | 0.30 | 0.10 | 0.05 | 0.02 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Technology Hardware & Equipment | 0.59 | 0.64 | 0.64 | 0.64 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.42 | 0.44 | 0.48 | 0.51 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 8,484 ÷ 20,035 = 0.42
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
-
The total debt experienced fluctuations over the five-year period. It increased from $8,252 million in 2019 to a peak of $8,701 million in 2020, then decreased notably to $7,829 million in 2021 and slightly dropped again in 2022 to $7,817 million. However, in 2023 the debt rose once more to $8,484 million. This pattern indicates a general trend of initial increase, followed by reduction, and then a recent uptick in debt levels.
- Total Capital (including operating lease liability)
-
Total capital showed a gradual decline over the period analyzed. Beginning at $21,159 million in 2019, it reached its highest point in 2020 at $21,958 million. From 2021 onwards, there was a steady decrease in total capital, dropping to $20,162 million in 2021, $19,825 million in 2022, and slightly rising to $20,035 million in 2023. The overall movement suggests a downward trend in total capital over these years.
- Debt to Capital Ratio (including operating lease liability)
-
The debt to capital ratio remained relatively stable from 2019 through 2022, fluctuating narrowly between 0.39 and 0.40. A notable change occurred in 2023 when the ratio increased to 0.42. This indicates a modest rise in leverage, reflecting the increase in total debt alongside the slight recovery in total capital. The steady ratio through the earlier years suggests consistent capital structure management until the recent increase in 2023.
- Overall Analysis
-
The financial data reflects consistent management of capital structure with small fluctuations in debt and capital levels until 2022. The decline in total capital from 2020 onwards, coupled with the fluctuating debt levels, suggests careful debt management possibly aimed at optimization. The increase in both total debt and the debt to capital ratio in 2023 may indicate an increased reliance on leverage, which could be linked to recent strategic decisions or market conditions. Monitoring future trends will be important to assess the sustainability of this change in financial structure.
Debt to Assets
Corning Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt and short-term borrowings | 320) | 224) | 55) | 156) | 11) | |
| Long-term debt, excluding current portion | 7,206) | 6,687) | 6,989) | 7,816) | 7,729) | |
| Total debt | 7,526) | 6,911) | 7,044) | 7,972) | 7,740) | |
| Total assets | 28,500) | 29,499) | 30,154) | 30,775) | 28,898) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.26 | 0.23 | 0.23 | 0.26 | 0.27 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Apple Inc. | 0.32 | 0.34 | 0.36 | 0.35 | 0.32 | |
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Cisco Systems Inc. | 0.08 | 0.10 | 0.12 | 0.15 | 0.25 | |
| Dell Technologies Inc. | 0.33 | 0.29 | 0.39 | 0.44 | — | |
| Super Micro Computer Inc. | 0.08 | 0.19 | 0.04 | 0.02 | 0.01 | |
| Debt to Assets, Sector | ||||||
| Technology Hardware & Equipment | 0.27 | 0.29 | 0.32 | 0.33 | — | |
| Debt to Assets, Industry | ||||||
| Information Technology | 0.26 | 0.26 | 0.29 | 0.31 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 7,526 ÷ 28,500 = 0.26
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited some fluctuations over the five-year period. It increased from $7,740 million in 2019 to $7,972 million in 2020, showing a slight rise. Subsequently, it decreased for two consecutive years, reaching $6,911 million in 2022. However, in 2023, the total debt rose again to $7,526 million. Overall, the debt level at the end of 2023 was slightly below the 2020 peak but remained higher than the 2019 value.
- Total Assets
- Total assets showed a general decline during the review period. Assets increased initially from $28,898 million in 2019 to $30,775 million in 2020. Thereafter, total assets decreased steadily for three years, falling to $28,500 million in 2023. This indicates a gradual contraction in the company's asset base after the 2020 peak.
- Debt to Assets Ratio
- The debt to assets ratio remained relatively stable throughout the period, fluctuating slightly between 0.23 and 0.27. It started at 0.27 in 2019, decreased to 0.26 in 2020, and further declined to 0.23 in 2021 and 2022, demonstrating improved leverage. However, in 2023, the ratio increased back to 0.26, suggesting a modest increase in leverage as total debt rose and total assets declined.
Debt to Assets (including Operating Lease Liability)
Corning Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt and short-term borrowings | 320) | 224) | 55) | 156) | 11) | |
| Long-term debt, excluding current portion | 7,206) | 6,687) | 6,989) | 7,816) | 7,729) | |
| Total debt | 7,526) | 6,911) | 7,044) | 7,972) | 7,740) | |
| Short-term operating lease liabilities | 112) | 111) | 94) | 96) | 62) | |
| Long-term operating lease liabilities | 846) | 795) | 691) | 633) | 450) | |
| Total debt (including operating lease liability) | 8,484) | 7,817) | 7,829) | 8,701) | 8,252) | |
| Total assets | 28,500) | 29,499) | 30,154) | 30,775) | 28,898) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.30 | 0.26 | 0.26 | 0.28 | 0.29 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Apple Inc. | 0.35 | 0.38 | 0.39 | 0.38 | 0.32 | |
| Arista Networks Inc. | 0.01 | 0.01 | 0.01 | 0.02 | — | |
| Cisco Systems Inc. | 0.09 | 0.11 | 0.13 | 0.16 | 0.25 | |
| Dell Technologies Inc. | 0.34 | 0.30 | 0.41 | 0.45 | — | |
| Super Micro Computer Inc. | 0.08 | 0.19 | 0.05 | 0.03 | 0.01 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Technology Hardware & Equipment | 0.29 | 0.31 | 0.34 | 0.35 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.28 | 0.29 | 0.31 | 0.33 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 8,484 ÷ 28,500 = 0.30
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt exhibited a fluctuating pattern over the five-year period. Starting at $8,252 million in 2019, it increased to a peak of $8,701 million in 2020, followed by a decline to $7,829 million in 2021. It then remained relatively stable in 2022 at $7,817 million before rising again to $8,484 million in 2023. Overall, the debt levels remain high, with a notable dip in the middle years and an increase towards the end of the observed period.
- Total Assets
- Total assets showed a generally decreasing trend over the period. From $28,898 million in 2019, assets increased slightly to $30,775 million in 2020, which represented the highest point in the range. After 2020, total assets declined consecutively each year, reaching $28,500 million by the end of 2023, reflecting a gradual contraction in the asset base after 2020.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The debt to assets ratio decreased from 0.29 in 2019 to 0.28 in 2020 and further declined to 0.26 in both 2021 and 2022, indicating an improvement in leverage and a moderate reduction in debt relative to assets during this time. However, in 2023 the ratio increased to 0.30, surpassing the initial level from 2019. This increase suggests a relative rise in debt compared to the company's asset base by the end of the period.
Financial Leverage
Corning Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 28,500) | 29,499) | 30,154) | 30,775) | 28,898) | |
| Total Corning Incorporated shareholders’ equity | 11,551) | 12,008) | 12,333) | 13,257) | 12,907) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.47 | 2.46 | 2.44 | 2.32 | 2.24 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Apple Inc. | 5.67 | 6.96 | 5.56 | 4.96 | 3.74 | |
| Arista Networks Inc. | 1.38 | 1.39 | 1.44 | 1.43 | — | |
| Cisco Systems Inc. | 2.30 | 2.36 | 2.36 | 2.50 | 2.91 | |
| Dell Technologies Inc. | — | — | 49.78 | — | — | |
| Super Micro Computer Inc. | 1.86 | 2.25 | 2.05 | 1.80 | 1.79 | |
| Financial Leverage, Sector | ||||||
| Technology Hardware & Equipment | 4.95 | 5.78 | 5.18 | 5.13 | — | |
| Financial Leverage, Industry | ||||||
| Information Technology | 2.56 | 2.69 | 2.90 | 3.12 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Financial leverage = Total assets ÷ Total Corning Incorporated shareholders’ equity
= 28,500 ÷ 11,551 = 2.47
2 Click competitor name to see calculations.
- Total Assets
- The total assets exhibited a general decreasing trend over the analyzed period. After increasing from 28,898 million US dollars in 2019 to a peak of 30,775 million US dollars in 2020, total assets declined each subsequent year, reaching 28,500 million US dollars in 2023. This suggests a contraction in asset holdings or a divestment process following 2020.
- Total Shareholders’ Equity
- Shareholders’ equity peaked at 13,257 million US dollars in 2020, improving slightly from the 2019 value of 12,907 million US dollars. However, from 2021 onward, equity declined steadily each year, falling to 11,551 million US dollars by 2023. This downward trend may reflect reductions in retained earnings or increases in liabilities.
- Financial Leverage
- The financial leverage ratio increased consistently over the period, from 2.24 in 2019 to 2.47 by 2023. This rising leverage indicates an increasing proportion of debt relative to equity, aligning with the observed declines in shareholders’ equity contrasted against relatively stable or slightly declining total assets. The trend implies a gradual increase in the company’s reliance on debt financing.
Interest Coverage
Corning Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Corning Incorporated | 581) | 1,316) | 1,906) | 512) | 960) | |
| Add: Net income attributable to noncontrolling interest | 67) | 70) | 29) | 11) | 19) | |
| Add: Income tax expense | 168) | 411) | 491) | 111) | 256) | |
| Add: Interest expense | 329) | 292) | 300) | 276) | 221) | |
| Earnings before interest and tax (EBIT) | 1,145) | 2,089) | 2,726) | 910) | 1,456) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 3.48 | 7.15 | 9.09 | 3.30 | 6.59 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Apple Inc. | 29.92 | 41.64 | 42.29 | 24.35 | 19.38 | |
| Arista Networks Inc. | — | — | — | — | — | |
| Cisco Systems Inc. | 36.87 | 41.21 | 31.56 | 24.88 | 17.96 | |
| Dell Technologies Inc. | 3.64 | 4.84 | 2.54 | 1.00 | — | |
| Super Micro Computer Inc. | 72.55 | 53.71 | 48.81 | 40.01 | 13.97 | |
| Interest Coverage, Sector | ||||||
| Technology Hardware & Equipment | 25.22 | 30.22 | 24.25 | 14.35 | — | |
| Interest Coverage, Industry | ||||||
| Information Technology | 17.69 | 22.65 | 19.92 | 14.14 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 1,145 ÷ 329 = 3.48
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT shows significant fluctuations over the observed period. It started at $1,456 million in 2019 and decreased sharply to $910 million in 2020. In 2021, there was a substantial increase reaching a peak of $2,726 million, followed by a decline to $2,089 million in 2022. The year 2023 saw another decrease, bringing EBIT down to $1,145 million. Overall, the EBIT experienced volatility with a notable peak in 2021.
- Interest expense
- The interest expense has shown a generally upward trend. Beginning at $221 million in 2019, it increased progressively each year, reaching $329 million by 2023. This continuous rise suggests growing financing costs or increased debt levels over the years.
- Interest coverage ratio
- The interest coverage ratio, which measures the ability to meet interest obligations, fluctuated alongside EBIT changes. It declined from a strong 6.59 in 2019 to a low of 3.3 in 2020. The ratio improved significantly in 2021 to 9.09, reflecting a strengthened capacity to cover interest expenses. Subsequent years showed a decline again, with the ratio falling to 7.15 in 2022 and further down to 3.48 in 2023. This pattern indicates variability in earnings relative to interest costs, with a concern over reduced coverage in recent years.
Fixed Charge Coverage
Corning Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Statutory U.S. federal income tax rate | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | |
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Corning Incorporated | 581) | 1,316) | 1,906) | 512) | 960) | |
| Add: Net income attributable to noncontrolling interest | 67) | 70) | 29) | 11) | 19) | |
| Add: Income tax expense | 168) | 411) | 491) | 111) | 256) | |
| Add: Interest expense | 329) | 292) | 300) | 276) | 221) | |
| Earnings before interest and tax (EBIT) | 1,145) | 2,089) | 2,726) | 910) | 1,456) | |
| Add: Operating lease cost | 171) | 147) | 139) | 133) | 110) | |
| Earnings before fixed charges and tax | 1,316) | 2,236) | 2,865) | 1,043) | 1,566) | |
| Interest expense | 329) | 292) | 300) | 276) | 221) | |
| Operating lease cost | 171) | 147) | 139) | 133) | 110) | |
| Series A convertible preferred stock dividend and excess consideration paid for redemption of preferred stock | —) | —) | 827) | 98) | 98) | |
| Series A convertible preferred stock dividend and excess consideration paid for redemption of preferred stock, tax adjustment1 | —) | —) | 220) | 26) | 26) | |
| Series A convertible preferred stock dividend and excess consideration paid for redemption of preferred stock, after tax adjustment | —) | —) | 1,047) | 124) | 124) | |
| Fixed charges | 500) | 439) | 1,486) | 533) | 455) | |
| Solvency Ratio | ||||||
| Fixed charge coverage2 | 2.63 | 5.09 | 1.93 | 1.96 | 3.44 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors3 | ||||||
| Apple Inc. | 20.17 | 25.65 | 26.13 | 16.34 | 14.48 | |
| Arista Networks Inc. | 73.83 | 49.20 | 31.02 | 24.95 | — | |
| Cisco Systems Inc. | 18.98 | 20.30 | 16.92 | 14.79 | 12.28 | |
| Dell Technologies Inc. | 3.14 | 4.16 | 2.26 | 1.00 | — | |
| Super Micro Computer Inc. | 40.95 | 24.03 | 12.52 | 10.45 | 7.48 | |
| Fixed Charge Coverage, Sector | ||||||
| Technology Hardware & Equipment | 17.24 | 19.84 | 16.62 | 10.51 | — | |
| Fixed Charge Coverage, Industry | ||||||
| Information Technology | 11.34 | 13.44 | 12.21 | 9.04 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Series A convertible preferred stock dividend and excess consideration paid for redemption of preferred stock, tax adjustment = (Series A convertible preferred stock dividend and excess consideration paid for redemption of preferred stock × Statutory U.S. federal income tax rate) ÷ (1 − Statutory U.S. federal income tax rate)
= (0 × 21.00%) ÷ (1 − 21.00%) = 0
2 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,316 ÷ 500 = 2.63
3 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax displayed notable volatility over the five-year period. Starting at 1,566 million USD in 2019, the figure dropped significantly to 1,043 million USD in 2020. This was followed by a sharp recovery in 2021, reaching a peak of 2,865 million USD, before declining again to 2,236 million USD in 2022 and further decreasing to 1,316 million USD in 2023. This pattern suggests cyclical fluctuations possibly impacted by external economic factors or internal operational changes.
- Fixed charges
- Fixed charges showed marked variation as well, initially increasing from 455 million USD in 2019 to 533 million USD in 2020. The amount surged dramatically to 1,486 million USD in 2021, coinciding with the peak in earnings before fixed charges and tax. Subsequently, fixed charges declined sharply to 439 million USD in 2022 and increased slightly to 500 million USD in 2023. These fluctuations may indicate changes in the company’s debt obligations or lease commitments during the period.
- Fixed charge coverage ratio
- The fixed charge coverage ratio, which measures the ability to cover fixed charges with earnings, reflected the shifts in earnings and fixed charges. The ratio decreased from 3.44 in 2019 to 1.96 in 2020, indicating reduced coverage capability. It remained nearly stable at 1.93 in 2021 despite the high absolute earnings, likely due to increased fixed charges that year. In 2022, coverage improved significantly to 5.09, the highest value in the period, suggesting strong earnings relative to fixed charges. However, in 2023, this ratio decreased to 2.63, indicating moderate coverage strength but a decline compared to the previous year.