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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- Balance Sheet: Assets
- Analysis of Geographic Areas
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Analysis of Revenues
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Solvency Ratios (Summary)
DuPont de Nemours Inc., solvency ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
Over the analyzed quarterly periods, key leverage ratios indicate a general trend of decreasing debt proportion relative to equity, capital, and assets, followed by periods of stabilization and slight increases.
- Debt to Equity Ratio
- The debt to equity ratio starts at 0.89 in the first quarter of 2015 and exhibits a declining trend through 2015 and most of 2016, reaching a low near 0.34 by the end of 2017. From 2018 onwards, this ratio stabilizes in the range of approximately 0.34 to 0.45, with minor fluctuations but no clear directional trend. This pattern suggests an initial reduction in reliance on debt financing relative to shareholder equity, followed by a stabilized leverage position.
- Debt to Capital Ratio
- Similarly, the debt to capital ratio falls from 0.47 at the start of 2015 to a minimum near 0.25 at the end of 2017. Post-2017, the ratio slightly increases again to around 0.30 by the end of 2019. This indicates that while there was a deliberate reduction in debt's share of overall capital early on, subsequent periods saw a modest increase, implying renewed but controlled borrowing.
- Debt to Assets Ratio
- The debt to assets ratio follows a comparable pattern, declining from approximately 0.29 in early 2015 to 0.18 by the end of 2017. After this, the ratio rises gradually to about 0.25 by the end of 2019. This movement reflects a reduction in the proportion of assets financed through debt initially, then a steady climb signaling either increased debt or reduced asset base relative to liabilities.
- Financial Leverage
- Financial leverage shows a notable decrease, from above 3.0 in early 2015 to roughly 1.9 by late 2017, signaling a significant reduction in the amplification of returns via debt. From 2018 to 2019, financial leverage fluctuates between 1.69 and 2.05, indicating a maintained moderate leverage state without pronounced changes.
- Interest Coverage Ratio
- Interest coverage fluctuates considerably over the periods with observable volatility. Starting with a peak of 11.5 in the third quarter of 2015, it declines sharply over the subsequent quarters, reaching values below 3 from 2017 onwards. By the fourth quarter of 2019, it drops dramatically to 0.29, signifying pronounced difficulties in covering interest obligations with operating earnings. This considerable decrease may indicate increasing financial stress or reduced operating performance relative to interest expenses during recent quarters.
Overall, the data suggests that the company has actively managed its leverage by reducing debt levels relative to equity, capital, and assets through 2017, followed by a controlled resurgence in debt levels thereafter. The sharp decline in interest coverage in the later periods raises concerns about the company's ability to comfortably service its debt, signaling potential liquidity or earnings challenges despite the moderate leverage ratios maintained.
Debt Ratios
Coverage Ratios
Debt to Equity
DuPont de Nemours Inc., debt to equity calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Short-term borrowings and finance lease obligations | ||||||||||||||||||||||||||
| Long-term debt, excluding due within one year | ||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||
| Total DuPont’s stockholders’ equity | ||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to equity1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||
| Linde plc | ||||||||||||||||||||||||||
| Sherwin-Williams Co. | ||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Debt to equity = Total debt ÷ Total DuPont’s stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several trends in the company's leverage and equity positions over the examined periods.
- Total Debt
- The total debt level experienced relative stability from March 2015 through June 2017, fluctuating modestly around the 17,000 to 21,500 million USD range. However, an abrupt increase is observed starting in September 2017, where debt surged sharply to above 34,000 million USD, peaking slightly over 41,000 million USD in June 2019. Following this peak, debt declined significantly in the last three quarters, settling around 17,500 million USD by December 2019. This pattern suggests a major financing event or restructuring occurred in late 2017, followed by subsequent debt reduction towards the end of 2019.
- Total DuPont’s Stockholders’ Equity
- Equity increased steadily from March 2015 to September 2017, growing from approximately 22,200 million USD to a peak over 102,900 million USD. This substantial rise coincides with the period of increased debt, implying significant capital or asset transactions. Post this peak, equity values slightly decreased and then stabilized around the 41,000 to 42,000 million USD range by the end of 2019. The decline after late 2017 corresponds with the reduction in debt, indicating potential asset sales, dividend payments, or revaluation of equity components.
- Debt to Equity Ratio
- The debt to equity ratio moved in line with changes in the underlying debt and equity values. Initially, it exhibited a downward trend from 0.89 in early 2015 to a low near 0.34 in mid-2017, indicating strengthening equity relative to debt. The ratio then sharply declined to around 0.34–0.36 during the period of peak equity and elevated debt from late 2017 to mid-2018. From mid-2018 onward, the ratio gradually increased again, reaching approximately 0.43 by the end of 2019, reflecting the combined effect of debt reduction and equity contraction. Overall, the ratio indicates fluctuating leverage, with a significant drop during late 2017 suggesting improved solvency, later settling into a moderate leverage position.
In summary, the data indicates a period characterized by a large financial restructuring or transaction around late 2017, marked by sharp increases in both debt and equity, followed by a reversal trend with gradual deleveraging and equity consolidation through the end of 2019. These shifts highlight a phase of significant financial transformation and subsequent stabilization.
Debt to Capital
DuPont de Nemours Inc., debt to capital calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Short-term borrowings and finance lease obligations | ||||||||||||||||||||||||||
| Long-term debt, excluding due within one year | ||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||
| Total DuPont’s stockholders’ equity | ||||||||||||||||||||||||||
| Total capital | ||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to capital1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||
| Linde plc | ||||||||||||||||||||||||||
| Sherwin-Williams Co. | ||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable fluctuations and trends in the company's debt and capital structure over the observed periods.
- Total Debt
- Throughout the period from March 2015 to December 2019, total debt demonstrated variability with an overall tendency to increase. Initially, total debt remained relatively stable around 19,700 million US dollars in 2015 but decreased slightly to approximately 17,210 million US dollars by the end of 2015. Subsequently, there was an upward trend beginning in early 2016, with total debt peaking notably in the third quarter of 2017, reaching approximately 36,901 million US dollars, more than doubling the level seen two years prior. Following this peak, total debt slightly declined yet remained elevated compared to earlier periods. A significant decline is observed in mid to late 2019, with debt dropping to around 17,485 million US dollars by the fourth quarter of that year, aligning closer to levels seen at the start of the dataset.
- Total Capital
- Total capital showed a steady increase during the initial part of the period until the end of 2017, ranging from approximately 42,000 million US dollars in early 2015 to a sharp increase reaching roughly 139,847 million US dollars by the third quarter of 2017. This remarkable jump coincides with the significant rise in total debt during the same period, implying substantial changes in the company's capital structure. After this peak, total capital gradually decreased but remained significantly higher than the levels observed before 2017, with values stabilizing around 58,000 to 59,000 million US dollars by the end of 2019.
- Debt to Capital Ratio
- The debt to capital ratio generally declined from 0.47 at the start of 2015 to lower levels near 0.25 by the end of 2017. This reduction in ratio is consistent with the dramatic increase in total capital outpacing the growth in debt during that timeframe. Post-2017, the ratio increased slightly to around 0.3 in 2019, reflecting a moderate rise in debt relative to capital. The ratio's movement suggests a shift toward a more leveraged position before 2017, followed by a period of deleveraging or capital expansion, and then a return to a moderately higher leverage level toward the end of the period.
In summary, the company's financial structure experienced significant changes, especially between 2016 and 2017, marked by a sharp increase in total capital and debt levels. The debt to capital ratio's decline during this time indicates a relatively stronger capital base despite rising debt. However, by 2019, both debt and capital decreased substantially from their peak levels, and the ratio stabilized at just below one-third, indicating a balanced leverage position compared to earlier years.
Debt to Assets
DuPont de Nemours Inc., debt to assets calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Short-term borrowings and finance lease obligations | ||||||||||||||||||||||||||
| Long-term debt, excluding due within one year | ||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to assets1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||
| Linde plc | ||||||||||||||||||||||||||
| Sherwin-Williams Co. | ||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The quarterly financial data reveals notable trends in the balance between total debt and total assets over the observed periods. Total debt exhibited fluctuations, with a general pattern of stability in earlier years followed by a significant increase and subsequent decrease within the mid-to-late periods.
- Total Debt
- Total debt remained relatively stable around the 19,700 million USD mark during 2015, followed by a slight dip towards the end of that year. It then increased notably in 2016, surpassing 21,000 million USD for most quarters. A sharp peak is observed in 2017 with debt rising above 36,000 million USD, after which it marginally decreased but stayed elevated near 34,000–35,000 million USD through 2018. In 2019, total debt dropped significantly back to levels near 17,500 million USD, showing a marked reduction relative to the previous two years.
- Total Assets
- Total assets increased steadily from about 67,800 million USD in early 2015 to just over 82,000 million USD by mid-2017. A pronounced surge occurred in late 2017, with total assets nearly doubling to about 198,000 million USD. This elevated level was largely sustained through 2018, although a slight decline began late in the year. By 2019, total assets sharply decreased back to approximately 69,000 million USD, similar to the levels at the beginning of the observed timeline.
- Debt to Assets Ratio
- The debt to assets ratio followed a decreasing trend from 2015 through 2017 despite fluctuations in total debt, falling from 0.29 to around 0.18. This suggests that asset growth outpaced debt increases during this interval. However, the ratio began rising again in 2018 and into 2019, reaching up to 0.25 by year-end 2019. This upward movement reflects the relative increase in debt compared to assets during this later period.
Overall, the data points to two significant periods of change: a phase of asset and debt expansion culminating in 2017-2018, and a subsequent period of both debt and asset contraction in 2019. The debt to assets ratio shows a reduction in financial leverage until 2017 followed by a gradual increase, indicating shifts in balance sheet structure and potentially changing risk exposure throughout these years.
Financial Leverage
DuPont de Nemours Inc., financial leverage calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||
| Total DuPont’s stockholders’ equity | ||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Financial leverage1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||
| Linde plc | ||||||||||||||||||||||||||
| Sherwin-Williams Co. | ||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Financial leverage = Total assets ÷ Total DuPont’s stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total assets
- The total assets showed a generally fluctuating pattern over the analyzed periods. Starting at approximately 67.8 billion US dollars at the end of the first quarter of 2015, the assets peaked notably around the third quarter of 2017 at nearly 198.5 billion US dollars, representing a substantial increase. However, following this peak, total assets gradually decreased and returned closer to previous levels, reaching roughly 69.4 billion US dollars by the end of 2019. This suggests a significant expansion phase followed by a consolidation or divestiture period.
- Total DuPont’s stockholders’ equity
- Stockholders' equity showed a steady growth from 22.2 billion USD in the first quarter of 2015 to around 28.4 billion USD by mid-2017, indicating strengthening ownership interest. Similar to total assets, equity demonstrated a sharp increase beginning in mid-2017, reaching over 102.9 billion USD by the third quarter of that year. This surge remained elevated until 2018 but then declined gradually to roughly 41 billion USD by the end of 2019. The pattern mirrors the asset movements and may reflect changes in capital structure or accounting adjustments associated with large transactions.
- Financial leverage
- Financial leverage showed a downward trend from a ratio of 3.05 in early 2015 to approximately 2.68 by the end of 2015, indicating a reduction in the relative use of debt financing. A brief increase occurred during 2016, with the ratio peaking above 3.0 by the end of that year. Subsequently, a notable decline to around 1.9 was observed throughout 2017 and into 2018, suggesting a period of deleveraging or asset base adjustment. The leverage ratio stabilized close to 1.7 in late 2019, reflecting a more conservative capital structure compared to earlier years.
- Overall analysis
- The data reflects a significant transformation in the company’s financial structure starting around mid-2017, with marked increases in total assets and equity, accompanied by a pronounced reduction in financial leverage. This indicates possible major corporate events such as acquisitions, restructurings, or changes in reporting methodologies. Following these changes, a consolidation phase ensued, with assets and equity decreasing and leverage maintaining a lower level. The evolving patterns suggest a shift towards a less leveraged capital structure, which might imply changes in risk appetite or strategic priorities.
Interest Coverage
DuPont de Nemours Inc., interest coverage calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net income (loss) available for DuPont | ||||||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | ||||||||||||||||||||||||||
| Less: Income (loss) from discontinued operations, net of tax | ||||||||||||||||||||||||||
| Add: Income tax expense | ||||||||||||||||||||||||||
| Add: Interest expense | ||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | ||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Interest coverage1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||
| Sherwin-Williams Co. | ||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Interest coverage
= (EBITQ4 2019
+ EBITQ3 2019
+ EBITQ2 2019
+ EBITQ1 2019)
÷ (Interest expenseQ4 2019
+ Interest expenseQ3 2019
+ Interest expenseQ2 2019
+ Interest expenseQ1 2019)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT exhibits considerable volatility over the analyzed quarters. Initially, EBIT peaked at 4,388 million USD in December 2015, followed by a sharp decline to 31 million USD by the end of 2016. Subsequently, EBIT fluctuated significantly, including negative values recorded in December 2017 (-2,520 million USD) and June 2019 (-783 million USD). The most recent quarter shows a negative EBIT of -884 million USD. Overall, the EBIT trend indicates unstable operating profitability with periods of both strong performance and substantial losses.
- Interest Expense
- Interest expense demonstrates a generally increasing trend from Q1 2015 (241 million USD) to Q4 2018 (432 million USD). The expense shows some fluctuations but remains elevated in the later periods relative to the earlier years. Notably, a negative value appears in Q4 2019 (-128 million USD), which is atypical for interest expense and may indicate adjustments or non-recurring items.
- Interest Coverage Ratio
- The interest coverage ratio, which indicates the ability to meet interest obligations, is absent for many early periods but begins to be reported from Q4 2015 onward. It reaches a high of 12.04 in Q4 2015, reflecting strong coverage. After this peak, the ratio declines steadily, dropping below 3 by early 2018 and further decreasing to 0.29 by the end of 2019. The declining coverage ratio suggests increasing difficulty in covering interest expenses from operating earnings, coinciding with the volatile and often negative EBIT values observed.