Analysis of Debt
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- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Debt to Equity since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
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Total Debt (Carrying Amount)
Corning Inc., balance sheet: debt
US$ in millions
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).
- Current Portion of Long-Term Debt and Short-Term Borrowings
- The current portion of long-term debt and short-term borrowings exhibited a clear upward trend from 2019 to 2023. Starting at a relatively low level of 11 million USD in 2019, the amount increased significantly to 156 million USD in 2020. Following a slight decline to 55 million USD in 2021, it rose sharply to 224 million USD in 2022 and further climbed to 320 million USD by the end of 2023. This indicates increasing short-term debt obligations over the analyzed period.
- Long-Term Debt, Excluding Current Portion
- The long-term debt excluding the current portion showed some fluctuation over the five-year period. Beginning at 7,729 million USD in 2019, it experienced a slight increase to 7,816 million USD in 2020. However, it then declined to 6,989 million USD in 2021 and further decreased to 6,687 million USD in 2022. In 2023, the balance rebounded somewhat to reach 7,206 million USD. This pattern suggests relative volatility in long-term debt levels, with an overall moderate reduction followed by a partial recovery.
- Total Long-Term Debt and Short-Term Borrowings (Carrying Amount)
- The total long-term debt and short-term borrowings, as measured by the carrying amount, mirrored the trends observed in its components. Starting at 7,740 million USD in 2019, it increased to 7,972 million USD in 2020 before declining to 7,044 million USD in 2021 and further to 6,911 million USD in 2022. In 2023, the total debt level rose again to 7,526 million USD. The total debt profile reflects a peak in 2020, followed by a reduction over two years and a partial recovery in the most recent year.
- Summary of Debt Trends
- The data reveals a notable increase in short-term debt obligations, suggesting a strategic shift or increased reliance on nearer-term financing. Long-term debt, conversely, showed some reduction from 2020 through 2022, indicating possible repayments or refinancing activities before rising again in 2023. Overall, despite fluctuations, total debt levels remained within a relatively close range across the five-year span, reflecting a stable but actively managed debt portfolio. The increasing short-term portion may warrant monitoring for liquidity implications.
Total Debt (Fair Value)
| Dec 31, 2023 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Current portion of long-term debt and short-term borrowings | |
| Long-term debt, excluding current portion | |
| Total long-term debt and short-term borrowings (fair value) | |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | |
Based on: 10-K (reporting date: 2023-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on long-term debt:
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| Total | |||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × ÷ =
Interest Costs Incurred
Corning Inc., interest costs incurred
US$ in millions
| 12 months ended: | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest expense | |||||||||||
| Interest capitalized | |||||||||||
| Interest costs |
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).
- Interest expense
- The interest expense exhibited a general upward trajectory over the five-year period. Starting at 221 million US dollars in 2019, it increased substantially to 276 million in 2020 and continued to rise to 300 million in 2021. A slight decline to 292 million was observed in 2022, followed by a renewed increase to 329 million in 2023, marking the highest level recorded in the timeline.
- Interest capitalized
- Interest capitalized showed a fluctuating pattern throughout the period. The amount initially rose from 54 million in 2019 to 58 million in 2020 but then fell sharply to 36 million in 2021. A partial recovery took place in 2022 with a rise to 48 million, yet the amount decreased again to 40 million in 2023. Overall, the levels remained lower compared to the initial years.
- Interest costs
- The total interest costs increased steadily across the years, starting from 275 million in 2019 and rising consistently to 334 million in 2020, then to 336 million in 2021. The trend continued with a slight increase to 340 million in 2022 and a further rise to 369 million in 2023. This pattern indicates a persistent increase in the combined interest expenses and capitalized interest over time.
- Overall insights
- The data reveals a strong upward trend in the total cost of interest, driven largely by rising interest expense. Although interest capitalized decreased overall after 2020, it showed variability year to year, potentially reflecting changes in capital expenditure or financing strategies. The consistent increase in overall interest costs suggests a growing financial burden related to borrowing or financing activities over the period assessed.
Adjusted Interest Coverage Ratio
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).
2023 Calculations
1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= ÷ =
2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs
= ÷ =
- Interest Coverage Ratio (without capitalized interest)
- The ratio shows notable fluctuations over the five-year period. It declined significantly from 6.59 in 2019 to 3.3 in 2020, indicating reduced ability to cover interest expenses from earnings during that year. However, the ratio rebounded strongly to 9.09 in 2021, reaching its highest point in the period, suggesting a marked improvement in earnings relative to interest obligations. Following this peak, the ratio declined to 7.15 in 2022 and further decreased to 3.48 in 2023. Overall, the trend demonstrates considerable volatility with a pronounced dip in 2020 and 2023, and a significant recovery in 2021.
- Adjusted Interest Coverage Ratio (with capitalized interest)
- This ratio follows a similar pattern to the non-adjusted interest coverage ratio but remains consistently lower each year, reflecting the impact of capitalized interest on coverage metrics. It decreased from 5.29 in 2019 to 2.72 in 2020, aligning with the downturn observed in the non-adjusted ratio. The ratio then improved sharply to 8.11 in 2021, mirroring the recovery trend. After peaking, it fell to 6.14 in 2022 and declined again to 3.1 in 2023. The pattern indicates that, although capitalized interest reduces coverage ratios, the overall movements over time remain consistent with those without capitalization.