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
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
- Aggregate Accruals
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Solvency Ratios (Summary)
Reynolds American Inc., solvency ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
- Debt to Equity
- The debt to equity ratio demonstrates an initial upward trend from 0.61 in March 2012, peaking at 1.23 in September 2013. Following this peak, it declines steadily, stabilizing around 0.61 from March 2016 through March 2017. This pattern suggests a period of increasing leverage followed by a return to more conservative capital structure levels.
- Debt to Capital
- This ratio follows a similar trajectory, rising from 0.38 in March 2012 to a high of 0.55 in June 2014 and September 2013, then gradually decreasing back to 0.38 by March 2017. The trend implies an increased reliance on debt financing up to mid-2014, after which the company reduces its debt proportion relative to total capital.
- Debt to Assets
- The debt to assets ratio increases from 0.22 in March 2012 to around 0.39 in June 2014, indicating growing asset financing through debt. It then shows fluctuations before declining to approximately 0.25 by March 2017, reflecting a reduction in the proportion of assets financed by debt towards the end of the period.
- Financial Leverage
- The financial leverage ratio rises from 2.77 in March 2012 to peak around 3.51 in March 2015. Thereafter, it steadily decreases to approximately 2.39 by March 2017. This aligns with the reduction in debt ratios and indicates lower use of debt relative to equity to finance assets in later periods.
- Interest Coverage
- The interest coverage ratio is only available from December 2012 onward and shows generally strong coverage levels above 8 times, peaking at 18.58 in December 2016. The ratio's variability suggests fluctuations in earnings relative to interest expense, with generally improving ability to service interest over time, particularly notable spikes in late 2015 and 2016.
Overall, the financial data indicates that the company progressively increased its leverage and debt financing up to around 2013-2014. From this point forward, a clear deleveraging trend emerges with reductions in debt-related ratios and financial leverage. Concurrently, interest coverage ratios suggest improved earnings relative to interest obligations, enhancing the company's capacity to manage debt expenses effectively in the later periods.
Debt Ratios
Coverage Ratios
Debt to Equity
Reynolds American Inc., debt to equity calculation (quarterly data)
| 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 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Revolving credit facility borrowings | ||||||||||||||||||||||||||||
| Current maturities of long-term debt | ||||||||||||||||||||||||||||
| Term-loan credit facility | ||||||||||||||||||||||||||||
| Long-term debt, less current maturities | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Shareholders’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | ||||||||||||||||||||||||||||
| Mondelēz International Inc. | ||||||||||||||||||||||||||||
| PepsiCo Inc. | ||||||||||||||||||||||||||||
| Philip Morris International Inc. | ||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q1 2017 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- Over the observed periods, total debt exhibits a significant increase between mid-2014 and late 2015, rising sharply from approximately 5,000 US$ million to around 18,000 US$ million. This spike is followed by a steady decline from late 2015 through early 2017, decreasing from roughly 18,000 US$ million to about 13,100 US$ million. Prior to the surge, total debt remains relatively stable, fluctuating between approximately 3,600 US$ million and 6,200 US$ million.
- Shareholders’ Equity
- Shareholders' equity shows a downward trend from early 2012 through early 2015, falling from around 6,000 US$ million to approximately 4,500 US$ million. Notably, a rapid increase occurs starting in the first quarter of 2015, with equity values jumping sharply to over 18,000 US$ million. This elevated level remains relatively stable, with continued slight growth reaching over 21,700 US$ million by early 2017.
- Debt to Equity Ratio
- The debt to equity ratio mirrors the changes seen in both total debt and shareholders' equity. Initially, it gradually rises from 0.61 in early 2012 to a peak near 1.23 by the third quarter of 2013, reflecting increasing leverage. Subsequently, it stabilizes around 1.0 to 1.12 until early 2015. Following this period, the ratio declines sharply to approximately 0.61 by early 2017, indicating a reduction in leverage consistent with decreasing debt and increasing equity. This suggests improved financial stability or deleveraging efforts in the later periods.
Debt to Capital
Reynolds American Inc., debt to capital calculation (quarterly data)
| 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 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Revolving credit facility borrowings | ||||||||||||||||||||||||||||
| Current maturities of long-term debt | ||||||||||||||||||||||||||||
| Term-loan credit facility | ||||||||||||||||||||||||||||
| Long-term debt, less current maturities | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Shareholders’ equity | ||||||||||||||||||||||||||||
| Total capital | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | ||||||||||||||||||||||||||||
| Mondelēz International Inc. | ||||||||||||||||||||||||||||
| PepsiCo Inc. | ||||||||||||||||||||||||||||
| Philip Morris International Inc. | ||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q1 2017 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's debt and capital structure over the observed periods.
- Total Debt
- Total debt exhibited a general upward trend from March 2012 through mid-2015, peaking significantly at approximately 18,000 million US dollars in June 2015 and staying elevated through late 2015. Prior to this peak, the debt level fluctuated moderately but maintained an overall increasing trajectory from around 3,653 million in early 2012 to about 5,079 million by early 2015. Following the mid-2015 peak, total debt gradually declined through 2016 and into early 2017, stabilizing near 13,152 million US dollars by March 2017.
- Total Capital
- The total capital remained relatively stable from 2012 until early 2015, hovering around 9,600 to 10,800 million US dollars with minor fluctuations. A sharp and substantial increase occurred in mid-2015, where total capital surged to the mid-30,000 million range, consistent with the spike observed in total debt. This elevated level of capital was sustained through early 2017, exhibiting minor variations but no significant declines, indicating a restructured or expanded capital base during and after 2015.
- Debt to Capital Ratio
- The debt to capital ratio ranged between 0.38 and 0.55 over the periods presented. Initially, the ratio increased from 0.38 in early 2012 to a peak of approximately 0.55 in the middle and late parts of 2013 and 2014, reflective of rising debt levels relative to total capital. Notably, after mid-2015, the ratio declined from 0.53 to around 0.38 by early 2017, indicating a reduction in financial leverage or an improvement in capital base relative to debt. This trend suggests a strategic effort to deleverage or rebalance the capital structure post-2015 peak debt levels.
In summary, the data depict a period of increased borrowing and capital expansion culminating around mid-2015, followed by a phase of deleveraging with reduced debt levels and a more balanced debt to capital ratio. This pattern may reflect strategic financial management decisions aimed at optimizing the balance sheet and mitigating risk associated with high leverage.
Debt to Assets
Reynolds American Inc., debt to assets calculation (quarterly data)
| 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 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Revolving credit facility borrowings | ||||||||||||||||||||||||||||
| Current maturities of long-term debt | ||||||||||||||||||||||||||||
| Term-loan credit facility | ||||||||||||||||||||||||||||
| Long-term debt, less current maturities | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | ||||||||||||||||||||||||||||
| Mondelēz International Inc. | ||||||||||||||||||||||||||||
| PepsiCo Inc. | ||||||||||||||||||||||||||||
| Philip Morris International Inc. | ||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q1 2017 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited fluctuations over the observed periods. Initially, from March 2012 to December 2012, total debt increased from 3,653 million USD to 5,095 million USD, signaling an expansion in leverage. Between early 2013 and mid-2014, total debt hovered approximately between 5,000 and 6,000 million USD, before a notable spike occurred in mid-2015 reaching approximately 18,000 million USD. Thereafter, total debt gradually decreased, settling near 13,000 million USD by March 2017.
- Total Assets
- Total assets showed variability with a general increasing trend punctuated by some declines. Starting at roughly 16,672 million USD at the end of Q1 2012, the asset base remained relatively stable through 2012 and early 2013, fluctuating around 15,000 to 16,500 million USD. A significant upward adjustment occurred in early 2015 when assets surged to over 54,000 million USD, maintaining this elevated level with minor variation throughout 2015 and into 2017. The increase likely reflects a major acquisition or revaluation.
- Debt to Assets Ratio
- The debt to assets ratio reveals patterns consistent with the movements in total debt and total assets. Initially, the ratio climbed from 0.22 in March 2012 to a peak of 0.38 in September 2013, indicating a rising leverage level relative to asset size. Following this peak, the ratio trended downward, stabilizing around 0.32 through 2014 and early 2015. Post-2015, despite the large rise in both debt and assets, the ratio remained steady near 0.33 initially, then declined to around 0.25 by the end of the observed period. This decline suggests an improvement in the company's solvency or a more conservative capital structure over time.
Financial Leverage
Reynolds American Inc., financial leverage calculation (quarterly data)
| 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 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Shareholders’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Financial leverage1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | ||||||||||||||||||||||||||||
| Mondelēz International Inc. | ||||||||||||||||||||||||||||
| PepsiCo Inc. | ||||||||||||||||||||||||||||
| Philip Morris International Inc. | ||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q1 2017 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Assets
- The total assets exhibit fluctuations over the analyzed periods. From March 2012 to December 2012, total assets show a generally stable pattern, around the range of approximately $15.2 billion to $16.7 billion. A notable increase is observed in the first quarter of 2015, when total assets surged to approximately $54.6 billion, maintaining a high level through 2015 and into 2016, followed by a slight gradual decline but remaining above $51 billion through early 2017.
- Shareholders’ Equity
- Shareholders' equity generally declines from March 2012 through December 2014, decreasing from around $6 billion to approximately $4.5 billion, indicative of a reduction in net company value or retained earnings during this period. In contrast, starting in the first quarter of 2015, there is a marked increase, with equity levels jumping to over $18 billion and further rising to above $21 billion by the end of 2016. This significant increase reflects either retained earnings growth, equity infusions, or revaluation effects. The equity remains relatively stable around $21.7 billion in early 2017.
- Financial Leverage
- The financial leverage ratio, indicative of the company's reliance on debt relative to equity, fluctuates in the early years, ranging roughly between 2.59 and 3.36 from 2012 to 2014. A peak is observed at the end of 2014 with a ratio close to 3.51, suggesting higher leverage. However, from 2015 onwards, the ratio declines steadily, dropping to values around 2.35 to 2.57 by late 2016 and early 2017. This decreasing trend signals a reduction in leverage and a possible strengthening of the equity base relative to liabilities.
- Overall Insights
- The data reveals a significant structural change beginning in early 2015, highlighted by sharp increases in total assets and shareholders' equity, accompanied by a lowering of financial leverage. This suggests a possible major transaction or restructuring event that expanded the asset and equity base while reducing relative debt levels. Prior to 2015, the company experienced moderate asset levels and declining equity, with higher leverage ratios, indicating a more leveraged financial structure during that period.
Interest Coverage
Reynolds American Inc., interest coverage calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net income | ||||||||||||||||||||||||||||
| Less: Income from discontinued operations, net of tax | ||||||||||||||||||||||||||||
| Add: Income tax expense | ||||||||||||||||||||||||||||
| Add: Interest and debt expense | ||||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Interest coverage1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | ||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q1 2017 Calculation
Interest coverage
= (EBITQ1 2017
+ EBITQ4 2016
+ EBITQ3 2016
+ EBITQ2 2016)
÷ (Interest expenseQ1 2017
+ Interest expenseQ4 2016
+ Interest expenseQ3 2016
+ Interest expenseQ2 2016)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT values exhibit considerable volatility throughout the periods analyzed. Initially, there are fluctuations with values ranging from 249 million to 891 million US dollars within the first four quarters. A significant spike occurs during the year ending December 31, 2015, where EBIT sharply rises to levels above 4,000 million US dollars. Following this exceptional increase, values return closer to a lower range but remain elevated relative to earlier periods, consistently maintaining figures above 1,300 million US dollars in the last observed quarters. This pattern suggests a one-time event or restructuring phase around 2015, impacting operational earnings substantially.
- Interest and debt expense
- The interest and debt expense shows a gradual upward trend over the timeline. Starting at moderate levels around 56 to 66 million US dollars in the early periods, expenses steadily increase, peaking at about 189 million US dollars in late 2015. After this peak, the expenses marginally decline but remain elevated, fluctuating between 149 and 185 million US dollars in subsequent quarters. This consistent increase indicates a growing debt burden or higher interest rates affecting financing costs over time.
- Interest coverage ratio
- The interest coverage ratio displays strong resilience despite fluctuations in EBIT and rising interest expenses. Early data is sparse, but from the available points, the ratio mostly stays above 8, with peaks exceeding 18 during some quarters, notably in 2015 and 2016. The ratio experiences some dips but generally remains well above the critical threshold of 1, indicating adequate ability to cover interest obligations from operating earnings. The substantial spikes in interest coverage coincide with the EBIT surge in 2015, reflecting improved earnings relative to interest costs during that period.