Analysis of Solvency Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The analysis of the company’s quarterly financial ratios reveals several trends in leverage and coverage metrics over the observed periods.
- Debt to Equity Ratio
- The debt to equity ratio shows relative stability with values fluctuating moderately between 0.57 and 0.67 in the most recent year. From 2020 through early 2022, a gradual decline is observed from 0.64 to approximately 0.56, indicating a slight reduction in reliance on debt compared to equity. However, from mid-2023 onwards, there is a slight upward shift, suggesting a modest increase in leverage relative to equity.
- Debt to Capital Ratio
- This ratio remains largely consistent, oscillating between 0.36 and 0.40 across all periods. There is no clear long-term upward or downward trend, implying a stable proportion of debt within the overall capital structure over the years analyzed.
- Debt to Assets Ratio
- The debt to assets ratio demonstrates a subtle declining trend from 0.28 in early 2020 to around 0.23 through 2021 and 2022, indicating a slight reduction in the proportion of assets financed by debt. However, in 2023, the ratio increases again, rising near 0.27, which suggests a modest increase in asset financing through debt in recent quarters.
- Financial Leverage Ratio
- Financial leverage ratios fluctuate within a relatively narrow band from roughly 2.25 to 2.55, with no pronounced directional trend. Occasional peaks correspond with periods of increased debt utilization, notably in mid-2021 and late 2022, but these do not represent a sustained shift.
- Interest Coverage Ratio
- The interest coverage ratio displays a distinct pattern. Initially, coverage is moderate to low in 2020, with values around 2.1 to 3.3, indicating limited cushion over interest expenses. From the first quarter of 2021 through late 2022, there is a notable improvement, with coverage rising significantly, peaking above 10 in mid-2022. This suggests an increased ability to service debt during this period, possibly driven by improved earnings or reduced interest expenses. However, starting from early 2023, there is a marked decline in interest coverage, dropping to levels near 3.5 by early 2024, implying diminished earnings relative to interest costs and potentially reduced financial flexibility.
In summary, the company maintains a generally consistent leverage profile with moderate adjustments over time. The improvements and subsequent decline in interest coverage highlight volatility in operational income relative to debt costs, signaling potential areas for financial management focus. The recent increases in debt ratios and lowered coverage warrant monitoring to assess risk and sustainability of debt service capacity moving forward.
Debt Ratios
Coverage Ratios
Debt to Equity
Corning Inc., debt to equity calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current portion of long-term debt and short-term borrowings | 318) | 320) | 297) | 187) | 197) | 224) | 208) | 121) | 120) | 55) | 50) | 353) | 154) | 156) | 256) | 12) | 12) | ||||||
| Long-term debt, excluding current portion | 7,050) | 7,206) | 7,210) | 7,437) | 6,654) | 6,687) | 6,525) | 6,677) | 6,839) | 6,989) | 7,019) | 7,025) | 7,650) | 7,816) | 7,822) | 7,797) | 7,815) | ||||||
| Total debt | 7,368) | 7,526) | 7,507) | 7,624) | 6,851) | 6,911) | 6,733) | 6,798) | 6,959) | 7,044) | 7,069) | 7,378) | 7,804) | 7,972) | 8,078) | 7,809) | 7,827) | ||||||
| Total Corning Incorporated shareholders’ equity | 11,226) | 11,551) | 11,430) | 11,412) | 11,925) | 12,008) | 11,284) | 11,734) | 12,395) | 12,333) | 12,145) | 11,960) | 13,369) | 13,257) | 12,660) | 12,049) | 12,198) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity1 | 0.66 | 0.65 | 0.66 | 0.67 | 0.57 | 0.58 | 0.60 | 0.58 | 0.56 | 0.57 | 0.58 | 0.62 | 0.58 | 0.60 | 0.64 | 0.65 | 0.64 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | 1.46 | 1.79 | 1.81 | 1.76 | 1.96 | 2.37 | 2.06 | 1.78 | 1.71 | 1.98 | 1.89 | 1.76 | 1.69 | — | — | — | — | ||||||
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | ||||||
| Cisco Systems Inc. | 0.17 | 0.19 | 0.20 | 0.21 | 0.22 | 0.24 | 0.23 | 0.29 | 0.22 | 0.28 | 0.29 | 0.37 | 0.38 | — | — | — | — | ||||||
| Dell Technologies Inc. | — | — | — | — | — | — | 5.36 | 9.04 | 13.39 | 19.36 | 56.47 | — | — | — | — | — | — | ||||||
| Super Micro Computer Inc. | 0.07 | 0.15 | 0.11 | 0.09 | 0.15 | 0.42 | 0.43 | 0.27 | 0.25 | 0.09 | 0.08 | 0.04 | 0.03 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Debt to equity = Total debt ÷ Total Corning Incorporated shareholders’ equity
= 7,368 ÷ 11,226 = 0.66
2 Click competitor name to see calculations.
- Debt Trends
- The company’s total debt showed fluctuations over the analyzed period. It remained relatively stable around the range of approximately $7.8 billion through 2020 and the first half of 2021, followed by a gradual decline to around $6.7 billion by late 2022. However, debt levels rose again in 2023, reaching approximately $7.6 billion by the end of the year, and then slightly decreased to about $7.4 billion in the first quarter of 2024.
- Equity Trends
- Shareholders’ equity exhibited more variability during the same timeframe. It increased from approximately $12.2 billion at the start of 2020 to a peak of roughly $13.4 billion in early 2021, before experiencing a decline toward the end of 2021 and through 2022. Notably, equity fell more sharply in 2022, reaching around $11.3 billion. Throughout 2023 and into early 2024, shareholder equity stabilized slightly but remained lower than earlier peak levels, ending near $11.2 billion in Q1 2024.
- Debt to Equity Ratio
- The debt to equity ratio demonstrates the relationship between the company’s debt and its equity base, revealing changes in its financial leverage. The ratio declined from 0.64 at the start of 2020 to a low of approximately 0.56 by early 2022, indicating a reduction in leverage due to either decreasing debt, increasing equity, or both. Following this low point, the ratio increased noticeably in 2023 to a high near 0.67, suggesting a relative increase in financial leverage, potentially caused by rising debt or decreasing equity. By Q1 2024, the ratio slightly decreased but remained elevated around 0.66, reflecting a maintained higher leverage position compared to the earlier part of the period.
- Overall Financial Position Insights
- The data indicates that the company experienced fluctuations in its capital structure with a trend towards increased leverage in 2023 after a period of deleveraging in 2020-2022. The spike in the debt-to-equity ratio in the recent periods suggests the company may have increased borrowing or faced reductions in equity, which could influence its risk profile and financial flexibility. The stabilization of equity at a lower level than the 2020-early 2021 peak may highlight challenges in restoring shareholder equity levels or changes in retained earnings and asset valuations.
Debt to Capital
Corning Inc., debt to capital calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current portion of long-term debt and short-term borrowings | 318) | 320) | 297) | 187) | 197) | 224) | 208) | 121) | 120) | 55) | 50) | 353) | 154) | 156) | 256) | 12) | 12) | ||||||
| Long-term debt, excluding current portion | 7,050) | 7,206) | 7,210) | 7,437) | 6,654) | 6,687) | 6,525) | 6,677) | 6,839) | 6,989) | 7,019) | 7,025) | 7,650) | 7,816) | 7,822) | 7,797) | 7,815) | ||||||
| Total debt | 7,368) | 7,526) | 7,507) | 7,624) | 6,851) | 6,911) | 6,733) | 6,798) | 6,959) | 7,044) | 7,069) | 7,378) | 7,804) | 7,972) | 8,078) | 7,809) | 7,827) | ||||||
| Total Corning Incorporated shareholders’ equity | 11,226) | 11,551) | 11,430) | 11,412) | 11,925) | 12,008) | 11,284) | 11,734) | 12,395) | 12,333) | 12,145) | 11,960) | 13,369) | 13,257) | 12,660) | 12,049) | 12,198) | ||||||
| Total capital | 18,594) | 19,077) | 18,937) | 19,036) | 18,776) | 18,919) | 18,017) | 18,532) | 19,354) | 19,377) | 19,214) | 19,338) | 21,173) | 21,229) | 20,738) | 19,858) | 20,025) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital1 | 0.40 | 0.39 | 0.40 | 0.40 | 0.36 | 0.37 | 0.37 | 0.37 | 0.36 | 0.36 | 0.37 | 0.38 | 0.37 | 0.38 | 0.39 | 0.39 | 0.39 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | 0.59 | 0.64 | 0.64 | 0.64 | 0.66 | 0.70 | 0.67 | 0.64 | 0.63 | 0.66 | 0.65 | 0.64 | 0.63 | — | — | — | — | ||||||
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | ||||||
| Cisco Systems Inc. | 0.14 | 0.16 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | 0.23 | 0.18 | 0.22 | 0.22 | 0.27 | 0.28 | — | — | — | — | ||||||
| Dell Technologies Inc. | 1.12 | 1.12 | 1.15 | 1.12 | 1.10 | 1.07 | 0.84 | 0.90 | 0.93 | 0.95 | 0.98 | 1.01 | 1.03 | — | — | — | — | ||||||
| Super Micro Computer Inc. | 0.06 | 0.13 | 0.10 | 0.09 | 0.13 | 0.30 | 0.30 | 0.21 | 0.20 | 0.08 | 0.07 | 0.04 | 0.03 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 7,368 ÷ 18,594 = 0.40
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited moderate fluctuations over the observed periods. Starting at approximately 7.8 billion USD in the first quarter of 2020, debt levels slightly increased by the third quarter of 2020 before trending downward through mid-2022. There was a notable decrease from 7.8 billion to around 6.7 billion USD by the third quarter of 2022, indicating a reduction in leverage. However, from late 2022 onwards, debt levels rose again, reaching over 7.5 billion USD by the final quarter of 2023 before slightly declining to about 7.4 billion USD in the first quarter of 2024.
- Total Capital
- Total capital showed a general downward trend during the assessed timeframe. Beginning near 20 billion USD in early 2020, it peaked around 21.2 billion USD by the end of 2020 before steadily decreasing to approximately 18 billion USD by the third quarter of 2022. Following a modest recovery toward 19 billion USD through late 2023, capital diminished again to just under 18.6 billion USD in early 2024. This pattern suggests some capital base erosion with intermittent partial recoveries.
- Debt to Capital Ratio
- The debt to capital ratio remained relatively stable throughout the period, oscillating narrowly between 0.36 and 0.40. Initially close to 0.39 in early 2020, it declined slightly below 0.37 in 2021 and early 2022, reflecting a moderate reduction in financial leverage. From late 2022 onward, the ratio gradually increased, reaching around 0.40 by the end of 2023 and sustaining this level into the first quarter of 2024. This indicates a modest rise in the proportion of debt financing relative to total capital in the most recent quarters.
- Overall Insights
- The analysis reveals that while total debt experienced some decreases during mid-periods, it returned to elevated levels approaching those of early 2020 by the end of the timeline. Total capital similarly declined overall, pointing to a contraction in the company's total invested resources. The relatively stable debt to capital ratio highlights consistent capital structure management, although the late increase signals a slight shift toward higher leverage. The trends suggest cautious balance sheet adjustments with occasional increases in debt reliance in the latter periods.
Debt to Assets
Corning Inc., debt to assets calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current portion of long-term debt and short-term borrowings | 318) | 320) | 297) | 187) | 197) | 224) | 208) | 121) | 120) | 55) | 50) | 353) | 154) | 156) | 256) | 12) | 12) | ||||||
| Long-term debt, excluding current portion | 7,050) | 7,206) | 7,210) | 7,437) | 6,654) | 6,687) | 6,525) | 6,677) | 6,839) | 6,989) | 7,019) | 7,025) | 7,650) | 7,816) | 7,822) | 7,797) | 7,815) | ||||||
| Total debt | 7,368) | 7,526) | 7,507) | 7,624) | 6,851) | 6,911) | 6,733) | 6,798) | 6,959) | 7,044) | 7,069) | 7,378) | 7,804) | 7,972) | 8,078) | 7,809) | 7,827) | ||||||
| Total assets | 27,618) | 28,500) | 28,278) | 28,645) | 28,822) | 29,499) | 28,735) | 29,718) | 30,257) | 30,154) | 29,706) | 29,806) | 30,143) | 30,775) | 30,267) | 27,546) | 27,859) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets1 | 0.27 | 0.26 | 0.27 | 0.27 | 0.24 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.24 | 0.25 | 0.26 | 0.26 | 0.27 | 0.28 | 0.28 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | 0.31 | 0.32 | 0.33 | 0.33 | 0.32 | 0.34 | 0.36 | 0.34 | 0.32 | 0.36 | 0.37 | 0.36 | 0.32 | — | — | — | — | ||||||
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | ||||||
| Cisco Systems Inc. | 0.08 | 0.08 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.12 | 0.10 | 0.12 | 0.12 | 0.15 | 0.15 | — | — | — | — | ||||||
| Dell Technologies Inc. | 0.34 | 0.33 | 0.32 | 0.30 | 0.31 | 0.29 | 0.35 | 0.36 | 0.38 | 0.39 | 0.42 | 0.44 | 0.47 | — | — | — | — | ||||||
| Super Micro Computer Inc. | 0.04 | 0.08 | 0.06 | 0.06 | 0.08 | 0.19 | 0.18 | 0.12 | 0.11 | 0.04 | 0.04 | 0.02 | 0.02 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 7,368 ÷ 27,618 = 0.27
2 Click competitor name to see calculations.
- Total Debt
- The total debt showed a generally stable pattern from March 2020 through March 2024, with values fluctuating between approximately $6.7 billion and $7.8 billion. Initially, debt was near $7.8 billion in early 2020, followed by a gradual decline reaching a low point around $6.7 billion in late 2022. Subsequently, debt increased again, peaking near $7.6 billion by late 2023 before a slight reduction into early 2024. Overall, the total debt demonstrates minor fluctuations but no significant upward or downward trend.
- Total Assets
- Total assets generally remained within a range of approximately $27.6 billion to $30.8 billion throughout the period but exhibited a subtle declining trend over the longer term. Assets peaked near $30.8 billion in late 2020, followed by a gradual decrease that continued unevenly into early 2024, when assets reached about $27.6 billion. This suggests some reduction in the asset base relative to the peak levels recorded in 2020.
- Debt to Assets Ratio
- The debt-to-assets ratio displayed a gradual decrease from 0.28 in early 2020 to approximately 0.23 by late 2021 and through most of 2022, indicating a slight improvement in leverage position relative to total assets. However, from early 2023 onward, the ratio increased back to about 0.27 by early 2024. This increase reflects a relative rise in debt compared to assets, possibly indicating a marginal increase in financial leverage or a decline in assets relative to debt in the most recent periods.
- Summary
- Across the detailed quarterly intervals, the company maintained a relatively stable debt level while total assets exhibited a mild downward trend from their late 2020 peak. The leverage ratio improved moderately through 2021 and most of 2022, reflecting prudent financial management during that period. The reversal of this trend in 2023 and early 2024, with increasing leverage, could warrant closer monitoring to assess the implications for financial risk and capital structure moving forward.
Financial Leverage
Corning Inc., financial leverage calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Total assets | 27,618) | 28,500) | 28,278) | 28,645) | 28,822) | 29,499) | 28,735) | 29,718) | 30,257) | 30,154) | 29,706) | 29,806) | 30,143) | 30,775) | 30,267) | 27,546) | 27,859) | ||||||
| Total Corning Incorporated shareholders’ equity | 11,226) | 11,551) | 11,430) | 11,412) | 11,925) | 12,008) | 11,284) | 11,734) | 12,395) | 12,333) | 12,145) | 11,960) | 13,369) | 13,257) | 12,660) | 12,049) | 12,198) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Financial leverage1 | 2.46 | 2.47 | 2.47 | 2.51 | 2.42 | 2.46 | 2.55 | 2.53 | 2.44 | 2.44 | 2.45 | 2.49 | 2.25 | 2.32 | 2.39 | 2.29 | 2.28 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | 4.77 | 5.67 | 5.56 | 5.34 | 6.11 | 6.96 | 5.79 | 5.20 | 5.30 | 5.56 | 5.13 | 4.87 | 5.35 | — | — | — | — | ||||||
| Arista Networks Inc. | 1.34 | 1.38 | 1.39 | 1.40 | 1.42 | 1.39 | 1.41 | 1.45 | 1.47 | 1.44 | 1.41 | 1.41 | 1.42 | — | — | — | — | ||||||
| Cisco Systems Inc. | 2.18 | 2.30 | 2.31 | 2.31 | 2.31 | 2.36 | 2.30 | 2.39 | 2.25 | 2.36 | 2.34 | 2.44 | 2.49 | — | — | — | — | ||||||
| Dell Technologies Inc. | — | — | — | — | — | — | 15.15 | 25.43 | 34.92 | 49.78 | 134.71 | — | — | — | — | — | — | ||||||
| Super Micro Computer Inc. | 1.89 | 1.86 | 1.81 | 1.69 | 2.03 | 2.25 | 2.41 | 2.26 | 2.14 | 2.05 | 1.90 | 1.78 | 1.69 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Financial leverage = Total assets ÷ Total Corning Incorporated shareholders’ equity
= 27,618 ÷ 11,226 = 2.46
2 Click competitor name to see calculations.
- Total Assets
- The total assets reveal a fluctuating trend over the observed quarters. Starting at approximately 27.9 billion USD in March 2020, assets generally increased to a peak near 30.8 billion USD by the end of 2020. Following this high, total assets showed a gradual but consistent decline, reaching about 27.6 billion USD by March 2024. This indicates a contraction in the asset base over the long term, despite minor quarter-to-quarter variations.
- Total Shareholders’ Equity
- Shareholders’ equity exhibits moderate variability with no clear, sustained upward or downward trajectory. Equity grew from approximately 12.2 billion USD in March 2020 to a high of around 13.4 billion USD in March 2021. Post this peak, equity experienced a decline and some volatility, stabilizing near 11.2 billion USD by March 2024. The fluctuations suggest changes in retained earnings, possible dividend payments, or share repurchase activities impacting equity levels.
- Financial Leverage
- The financial leverage ratio demonstrates relative stability with minor oscillations throughout the period. Starting from 2.28 in March 2020, the ratio rose to a maximum of about 2.55 in late 2022 before settling in a range slightly above 2.4 toward March 2024. This indicates a consistent leverage strategy, with the company maintaining a stable balance between debt and equity financing.
- Summary Insight
- Overall, the company’s asset base has contracted modestly since mid-2021, while shareholders’ equity has shown more pronounced volatility without a clear long-term trend. Financial leverage has remained relatively steady, suggesting a prudent approach to financial structure despite fluctuations in asset and equity values. The slight decrease in total assets combined with stable leverage might imply efforts to optimize asset efficiency or adjust capital deployment.
Interest Coverage
Corning Inc., interest coverage calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income (loss) attributable to Corning Incorporated | 209) | (40) | 164) | 281) | 176) | (36) | 208) | 563) | 581) | 487) | 371) | 449) | 599) | 252) | 427) | (71) | (96) | ||||||
| Add: Net income attributable to noncontrolling interest | 16) | 12) | 18) | 22) | 15) | 9) | 18) | 21) | 22) | 9) | 13) | 5) | 2) | —) | 5) | 6) | —) | ||||||
| Add: Income tax expense | 71) | (10) | 35) | 106) | 37) | 31) | 34) | 166) | 180) | 89) | 109) | 67) | 226) | 78) | 23) | 22) | (12) | ||||||
| Add: Interest expense | 83) | 90) | 82) | 81) | 76) | 76) | 73) | 72) | 71) | 73) | 72) | 78) | 77) | 75) | 70) | 67) | 64) | ||||||
| Earnings before interest and tax (EBIT) | 379) | 52) | 299) | 490) | 304) | 80) | 333) | 822) | 854) | 658) | 565) | 599) | 904) | 405) | 525) | 24) | (44) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Interest coverage1 | 3.63 | 3.48 | 3.72 | 3.94 | 5.18 | 7.15 | 9.23 | 10.07 | 9.10 | 9.09 | 8.19 | 8.11 | 6.43 | 3.30 | 2.21 | 2.11 | 3.34 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||
| Cisco Systems Inc. | 38.18 | 36.87 | 35.87 | 37.17 | 39.53 | 41.21 | 41.54 | 38.79 | 35.64 | 31.56 | 29.20 | 27.76 | 25.98 | — | — | — | — | ||||||
| Super Micro Computer Inc. | 84.71 | 72.55 | 70.87 | 68.85 | 56.79 | 53.71 | 51.73 | 42.94 | 45.86 | 48.81 | 38.80 | 38.83 | 36.02 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Interest coverage
= (EBITQ1 2024
+ EBITQ4 2023
+ EBITQ3 2023
+ EBITQ2 2023)
÷ (Interest expenseQ1 2024
+ Interest expenseQ4 2023
+ Interest expenseQ3 2023
+ Interest expenseQ2 2023)
= (379 + 52 + 299 + 490)
÷ (83 + 90 + 82 + 81)
= 3.63
2 Click competitor name to see calculations.
Over the observed period, earnings before interest and tax (EBIT) exhibited significant volatility with an overall cyclical pattern. Initially, EBIT started at a negative value of -44 million US dollars in the first quarter of 2020, followed by a sharp increase in subsequent quarters, peaking at 904 million US dollars by the first quarter of 2021. After this peak, EBIT showed fluctuations with a notable decline toward the end of 2022, reaching a low of 80 million US dollars in the fourth quarter of that year. A recovery trend occurred through 2023, with EBIT rising again above 490 million US dollars but declined once more in early 2024, ending at 379 million US dollars.
Interest expense remained relatively stable throughout the period, ranging between 64 million US dollars and 90 million US dollars with slight incremental increases over time. The expense trends show minor fluctuations but no drastic changes, indicating steady borrowing costs or interest obligations.
The interest coverage ratio, which measures the company's ability to meet its interest obligations from operating income, displayed an overall improvement from 2020 through mid-2022. The ratio rose from approximately 3.34 in the first quarter of 2020 to a peak of about 10.07 in the second quarter of 2022, reflecting stronger EBIT relative to interest expenses during that timeframe. However, following this peak, the interest coverage ratio declined gradually, reaching around 3.63 by the first quarter of 2024, signaling a reduction in operating income relative to interest costs and potentially indicating increasing risk in meeting interest obligations.
- EBIT Trend
- Started negative in early 2020, peaked in early 2021, declined sharply at end 2022, partial recovery in 2023, and decreased again early 2024.
- Interest Expense
- Remained stable with a slight upward trend from 64 million to around 83-90 million US dollars.
- Interest Coverage Ratio
- Improved significantly from 2020 until mid-2022, followed by a gradual downward trend through early 2024.
In summary, the financial data indicates periods of strong operating performance interspersed with contractions in EBIT. While the cost of debt remained fairly constant, the company's ability to service interest payments strengthened substantially until mid-2022 before weakening in the subsequent quarters. This pattern suggests a need for attention to maintaining operational profitability to sustain healthy interest coverage going forward.