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: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2010
- Operating Profit Margin since 2010
- Return on Equity (ROE) since 2010
- Debt to Equity since 2010
- Price to Earnings (P/E) since 2010
- Analysis of Revenues
- Analysis of Debt
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Solvency Ratios (Summary)
Kinder Morgan Inc., solvency ratios (quarterly data)
Based on: 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), 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).
- Debt to Equity Ratio
- The debt to equity ratio demonstrates a gradual decline over the analyzed period, moving from 1.29 in March 2015 to values around 1.06 in March 2020. This indicates a slow but steady reduction in the company’s reliance on debt relative to shareholder equity. Minor fluctuations occur, particularly around late 2017 and early 2018, where a slight uptick is observed, but the overall trend remains downward.
- Debt to Capital Ratio
- This ratio remains relatively stable with a marginal decreasing trend from 0.56 in early 2015 to around 0.51 by March 2020. This stability suggests that the company maintains a consistent mix of debt and equity in its capital structure, with a subtle preference toward reducing debt as a portion of total capital over time.
- Debt to Assets Ratio
- The debt to assets ratio shows a consistent, slow decrease moving from 0.53 in March 2015 to about 0.48 by the end of 2018 and remains steady near this value with slight variations through early 2020. This indicates improving asset financing structure with less reliance on debt funding assets.
- Financial Leverage Ratio
- Financial leverage exhibits a steady mild decline from 2.46 to about 2.22 across the five-year period. The ratio remains relatively consistent, with a few small fluctuations, such as a brief increase in late 2017. Overall, it reflects a modest reduction in total assets financed by equity, indicating a cautious approach to leveraging.
- Interest Coverage Ratio
- The interest coverage ratio shows a positive trend, with values starting around 1.38 in September 2015 and improving notably to 2.24 by March 2020. Except for slight dips, the ratio repeatedly rises, indicating enhanced ability of the company to cover interest expenses with operating earnings. This improvement suggests strengthening profitability or effective debt cost management over time.
Debt Ratios
Coverage Ratios
Debt to Equity
Kinder Morgan Inc., debt to equity calculation (quarterly data)
| 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 | 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) | ||||||||||||||||||||||||||||
| Current portion of debt | ||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total Kinder Morgan, Inc.’s stockholders’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||
Based on: 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), 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 Q1 2020 Calculation
Debt to equity = Total debt ÷ Total Kinder Morgan, Inc.’s stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt of the company shows a general downward trend from March 31, 2015, through March 31, 2020. Starting at approximately 45.3 billion US dollars, the debt decreased consistently over this five-year span, reaching around 34.9 billion US dollars by the end of the period. Notable declines are observed particularly from late 2015 through 2016 and again from early 2018 through 2020, suggesting sustained efforts to reduce leverage or repay outstanding liabilities.
- Stockholders’ Equity
- Stockholders' equity remained relatively stable throughout the period, maintaining a range between approximately 33.1 billion and 35.5 billion US dollars. There are minor fluctuations, with slight declines noted towards the end of 2017 and early 2018, followed by a recovery in subsequent quarters. The stability of equity amidst decreasing debt indicates a balanced approach to capital structure management without significant issuance or repurchase of equity capital during the timeframe.
- Debt to Equity Ratio
- The debt to equity ratio exhibits a consistent decline from 1.29 in March 2015 to a low near 1.02 in March 2020, reflecting the combined effect of declining debt and stable equity. This decreasing ratio indicates an improving leverage position, with the company progressively reducing its reliance on debt financing relative to equity. The ratio's dip below 1.1 during 2019 and early 2020 highlights a more conservative capital structure compared to the mid-2010s.
Debt to Capital
Kinder Morgan Inc., debt to capital calculation (quarterly data)
| 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 | 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) | ||||||||||||||||||||||||||||
| Current portion of debt | ||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total Kinder Morgan, Inc.’s stockholders’ equity | ||||||||||||||||||||||||||||
| Total capital | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||
Based on: 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), 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 Q1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt level demonstrates a gradual decline over the observed periods from March 31, 2015, to March 31, 2020. Starting at approximately $45.3 billion in early 2015, total debt experienced slight fluctuations but generally trended downward, reaching around $34.9 billion by the first quarter of 2020. This reduction suggests an ongoing effort to manage and reduce leverage over the five-year period, with more pronounced decreases occurring in certain intervals such as from late 2017 through early 2019.
- Total Capital
- Total capital similarly shows a mild decreasing trend throughout the same timeframe. Beginning near $80.3 billion in early 2015, total capital maintained relative stability with minor declines and intermittent periods of slight recovery. By March 2020, total capital had contracted to approximately $68 billion. This downward movement reflects either reduced debt, declining equity, or a combination of both, which correlates closely with the observed decrease in total debt.
- Debt to Capital Ratio
- The debt to capital ratio exhibits a consistent, gradual reduction over the period. Initially around 0.56 in early 2015, the ratio decreases to approximately 0.51 by the first quarter of 2020. This indicates a relative decline in debt financing compared to total capital, corroborating the decrease in total debt levels. The ratio shows a steady trend without sharp fluctuations, implying a deliberate approach to reducing leverage proportionate to capital structure adjustments.
Debt to Assets
Kinder Morgan Inc., debt to assets calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current portion of debt | ||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||
Based on: 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), 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 Q1 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
-
Total debt demonstrated a general downward trend over the examined period. Starting at 45,259 million USD in the first quarter of 2015, it decreased to 34,945 million USD by the first quarter of 2020. The decline was relatively steady, with occasional slight increases, such as from 34,392 million USD at the end of 2019 to 34,945 million USD in March 2020. Notably, the total debt decreased more significantly during 2016 and 2019.
- Total Assets
-
Total assets showed a gradual decline over the same timeframe. Beginning at 86,164 million USD at the start of 2015, the figure decreased to 73,530 million USD by the first quarter of 2020. The asset base experienced minor fluctuations but largely exhibited a downward trajectory, especially evident during 2016 and 2019, with notable consistency in periods of decline paralleling reductions in total debt.
- Debt to Assets Ratio
-
The debt to assets ratio trended downward from 0.53 in the first quarter of 2015 to a low of 0.46 by the end of 2019, indicating a gradual improvement in leverage and financial structure. This decrease suggests the company was reducing its reliance on debt relative to its asset base. However, there was a slight increase to 0.48 in the first quarter of 2020, implying a minor reversal or stabilization in the leverage ratio at that point.
- Summary of Trends
-
The overall pattern reveals a concerted effort to reduce total debt alongside a shrinking asset base over the five-year period. The concurrent decreases in total debt and total assets suggest possible asset sales, depreciation, or other balance sheet adjustments. The improving debt to assets ratio generally indicates enhanced financial stability and decreased leverage risk, although the recent uptick at the start of 2020 warrants monitoring. These trends may reflect strategic financial management aimed at strengthening the capital structure and reducing debt exposure.
Financial Leverage
Kinder Morgan Inc., financial leverage calculation (quarterly data)
| 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 | 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 Kinder Morgan, Inc.’s stockholders’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Financial leverage1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||
Based on: 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), 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 Q1 2020 Calculation
Financial leverage = Total assets ÷ Total Kinder Morgan, Inc.’s stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The total assets of the company demonstrate a generally declining trend over the analyzed period. Starting at US$86,164 million in the first quarter of 2015, total assets remained relatively stable through 2015 and the first half of 2016 before showing a gradual decrease. By the first quarter of 2020, total assets had declined to US$73,530 million, indicating a reduction of approximately 15% over five years. This decline suggests possible asset disposals, depreciation exceeding acquisitions, or other strategic balance sheet adjustments.
Stockholders' equity exhibits less volatility with a relatively stable pattern throughout the same period. Beginning at US$35,029 million in March 2015, equity peaked slightly above US$35,000 million during the subsequent quarters but displayed a modest downward tendency, ending at US$33,106 million in the first quarter of 2020. The change equates to roughly a 5.5% decrease over five years, which is considerably milder compared to the decline in total assets.
Financial leverage, measured as a ratio, illustrates a gradual but consistent decrease over time. The ratio starts at 2.46 in the first quarter of 2015 and declines to approximately 2.22 by the first quarter of 2020. This trend indicates a modest reduction in the use of debt relative to equity. It suggests a possible conservative shift in the capital structure or a response to changing market or operational conditions. The decreasing leverage ratio could imply lower financial risk and potentially improved creditworthiness.
Overall, the data reflects a cautious financial approach marked by a steady reduction in assets and leverage, coupled with relatively stable equity. This may indicate deliberate financial management aimed at strengthening the balance sheet and maintaining shareholder value amid evolving business circumstances.
- Total Assets
- Show a declining trend from US$86,164 million in Q1 2015 to US$73,530 million in Q1 2020, a decrease of about 15%.
- Stockholders' Equity
- Remains relatively stable with a slight decrease from US$35,029 million to US$33,106 million over the same period.
- Financial Leverage
- Declines from 2.46 to 2.22, indicating a reduced reliance on debt and a more conservative capital structure.
Interest Coverage
Kinder Morgan Inc., interest coverage calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net income (loss) attributable to Kinder Morgan, Inc. | ||||||||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | ||||||||||||||||||||||||||||
| Add: Income tax expense | ||||||||||||||||||||||||||||
| Add: Interest, net | ||||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Interest coverage1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||
Based on: 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), 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 Q1 2020 Calculation
Interest coverage
= (EBITQ1 2020
+ EBITQ4 2019
+ EBITQ3 2019
+ EBITQ2 2019)
÷ (Interest expenseQ1 2020
+ Interest expenseQ4 2019
+ Interest expenseQ3 2019
+ Interest expenseQ2 2019)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of financial metrics over the reported quarters reveals notable fluctuations and trends. Earnings before interest and tax (EBIT) exhibits considerable variability, with periods of decline and recovery. Initially, EBIT shows a downward trend, falling from 1,155 million US dollars in the first quarter of 2015 to a negative figure of -166 million US dollars by the end of 2015. However, from 2016 onwards, EBIT recovers and stabilizes, with several quarters showing values exceeding 1,000 million US dollars, peaking at 1,674 million US dollars in the third quarter of 2018. Despite this peak, there is some volatility, with decreases seen in subsequent quarters, and a significant drop to 205 million US dollars by the first quarter of 2020.
Interest expense, measured as net interest, remains relatively stable throughout the periods, fluctuating subtly around a range approximately between 422 and 540 million US dollars. This stability contrasts with EBIT variability, suggesting consistent interest obligations despite operating earnings changes.
The interest coverage ratio, which measures the company's ability to meet interest expenses from earnings, reflects the trends seen in EBIT. Early disclosures of the ratio show a low coverage near or slightly above 1, indicating limited capacity to cover interest expenses comfortably. Over time, this ratio improves, reaching a high of 2.84 in the third quarter of 2019, suggesting enhanced earnings relative to interest costs. The ratio then slightly declines but remains above 2, indicating generally adequate coverage even with EBIT fluctuations.
Overall, the data indicates that while the company faced operational earnings challenges, notably in late 2015, it demonstrated recovery and improved financial resilience in subsequent years. Interest expenses remained fairly constant, and the improved interest coverage ratio over time points to better financial stability. However, the declining EBIT in early 2020 warrants attention, as it may imply emerging operational difficulties or other influencing factors affecting profitability.