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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- Income Statement
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- Analysis of Geographic Areas
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
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Solvency Ratios (Summary)
Newmont Corp., 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), 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).
- Debt to equity
- The debt to equity ratio shows a general decreasing trend from 0.42 in March 2019 to around 0.29 at the end of 2020. It remains relatively stable throughout 2021 and 2022, fluctuating between 0.26 and 0.32. There is a slight increase beginning in late 2022, reaching 0.33 by March 2024, indicating a modest rise in the relative use of debt financing compared to equity in recent periods.
- Debt to capital
- This ratio gradually declines from 0.29 in early 2019 to about 0.21 by mid-2021, reflecting a reduction in debt as a component of total capital. Following mid-2021, the ratio stabilizes near 0.22 to 0.24, with a small upward movement toward 0.25 in early 2024, suggesting a slight increase in debt relative to capital.
- Debt to assets
- The debt to assets ratio declines from 0.21 in March 2019 to approximately 0.15 around mid-2021. It remains fairly constant in the range of 0.15 to 0.17 through early 2024, indicating overall stable leverage in relation to total assets with minor fluctuations.
- Financial leverage
- Financial leverage shows a gradual decrease from 1.99 in early 2019 to around 1.75 toward mid-2021. The ratio then exhibits a slight increase and fluctuation, peaking near 2.00 at the end of 2022, before settling close to 1.92 in early 2024. This indicates some variability in the proportion of total assets financed by equity over the periods.
- Interest coverage
- Interest coverage demonstrates considerable volatility and an overall downward trend. From the earliest available data point in December 2019 at 13.58, it initially rises to a peak of 16.16 in September 2020 but then declines sharply thereafter. By early 2022, it drops below 6, further slipping close to zero and eventually becoming negative by March 2024 (-7.10), reflecting growing difficulty in covering interest expenses from operating earnings, which may signal increasing financial stress.
Debt Ratios
Coverage Ratios
Debt to Equity
Newmont Corp., 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current finance lease and other financing obligations | ||||||||||||||||||||||||||||
| Current debt | ||||||||||||||||||||||||||||
| Non-current debt | ||||||||||||||||||||||||||||
| Non-current finance lease and other financing obligations | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total Newmont stockholders’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||
| Freeport-McMoRan Inc. | ||||||||||||||||||||||||||||
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), 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).
1 Q1 2024 Calculation
Debt to equity = Total debt ÷ Total Newmont stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends regarding the company's debt, equity, and leverage ratios over the analyzed periods.
- Total Debt
- The total debt shows a significant increase from March 31, 2019, at $4,373 million to a peak around September 30, 2019, reaching $7,462 million. Subsequently, the debt stabilized around the $6,600 to $6,700 million range from late 2019 through early 2023. However, a sharp increase in total debt occurs at the end of the most recent periods, with values jumping from $6,087 million on September 30, 2023, to $9,468 million by March 31, 2024. This suggests either new financing activities or increased borrowing in the last quarter.
- Total Newmont Stockholders’ Equity
- Stockholders' equity exhibited strong growth from approximately $10,499 million in March 2019 to a peak around $23,239 million by June 30, 2021. After this peak, a gradual decline is observed through to March 31, 2023, reaching around $19,074 million, indicating possible equity reductions due to share buybacks, losses, or dividend distributions. Notably, equity surged significantly again by March 31, 2024, up to $28,890 million, reversing the declining trend from previous quarters.
- Debt to Equity Ratio
- The debt to equity ratio steadily declined from 0.42 in March 2019 to a low of approximately 0.26 by June 30, 2021, reflecting a conservative leverage approach or stronger equity base during this period. After mid-2021, the ratio stabilized around 0.29 to 0.33, representing a moderate level of financial leverage. The rise in the ratio from 0.32 at the end of 2023 to 0.33 by March 31, 2024, though modest, aligns with the recent increase in total debt and equity fluctuations, suggesting a slight increase in risk exposure but remaining within a relatively stable leverage range.
Overall, the data indicates the company maintained a balanced capital structure with reduced leverage through mid-2021, followed by a period of stable debt levels and moderate equity declines. The recent surge in both debt and equity by the first quarter of 2024 could reflect strategic financial decisions affecting its capital structure, necessitating further analysis of underlying causes such as acquisitions, financing, or market conditions.
Debt to Capital
Newmont Corp., debt to capital calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current finance lease and other financing obligations | ||||||||||||||||||||||||||||
| Current debt | ||||||||||||||||||||||||||||
| Non-current debt | ||||||||||||||||||||||||||||
| Non-current finance lease and other financing obligations | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total Newmont stockholders’ equity | ||||||||||||||||||||||||||||
| Total capital | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||
| Freeport-McMoRan Inc. | ||||||||||||||||||||||||||||
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), 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).
1 Q1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The quarterly financial data reveals several noteworthy trends concerning debt levels, total capital, and the debt-to-capital ratio over the analyzed periods.
- Total Debt
-
Total debt experienced significant fluctuations throughout the observed quarters. Initially, there was a notable increase from 4,373 million USD at the end of March 2019 to a peak of 7,462 million USD by September 2019. Following this, the debt level showed some stability, maintaining values near 6,700 million USD through most of 2020 and the first quarter of 2021. Subsequently, the debt gradually decreased slightly to around 6,100 million USD from mid-2021 to the end of 2023, reflecting a period of relative debt reduction or stabilization. However, a marked rise occurred at the beginning of 2024, where the total debt spiked notably to approximately 9,436 million USD at the end of March 2024 and continued slightly upwards to 9,468 million USD by the end of the referenced quarter. This sharp increase in debt at the start of 2024 may indicate new financing activities or strategic borrowing.
- Total Capital
-
Total capital demonstrated an overall upward trend during the early periods, climbing from approximately 14,872 million USD at March 2019 to a peak near 29,841 million USD in March 2021. Following this peak, total capital showed a gradual decline over the subsequent quarters, decreasing to around 25,161 million USD by the end of 2023. At the outset of 2024, a significant surge in total capital occurred, reaching 38,463 million USD by March 2024, after which it slightly receded to 38,358 million USD. This surge towards the latest periods suggests a considerable increase in total resources potentially linked to capital raise, asset revaluation, or other financial structuring measures.
- Debt to Capital Ratio
-
The debt-to-capital ratio exhibits a generally declining trend during most of the period under review, moving from 0.29 in March 2019 down to a low of approximately 0.21 by mid-2021. This decrease indicates improvement in capital structure with relatively lower debt proportions. The ratio then stabilizes around 0.22 through 2022 and shows a minor uptick to approximately 0.24 from late 2022 onwards. In early 2024, the ratio increases further to 0.25, corresponding with the sharp rise in total debt observed in that period. Overall, the ratio reflects a moderate decrease and subsequent stabilization in leverage, followed by an increase associated with recent debt additions.
In summary, the data illustrates a phase of elevated debt build-up during 2019, followed by a relatively stable and modestly declining leverage profile through 2021 and 2022. The marked increases in total debt and total capital at the start of 2024 suggest substantial financial activities, potentially including new debt issuance or capital restructuring, impacting the company's leverage and capital base in the most recent periods.
Debt to Assets
Newmont Corp., 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current finance lease and other financing obligations | ||||||||||||||||||||||||||||
| Current debt | ||||||||||||||||||||||||||||
| Non-current debt | ||||||||||||||||||||||||||||
| Non-current finance lease and other financing obligations | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||
| Freeport-McMoRan Inc. | ||||||||||||||||||||||||||||
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), 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).
1 Q1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt demonstrated an initial significant increase from 4,373 million USD at the end of the first quarter of 2019 to a peak of approximately 7,462 million USD by September 2019. Thereafter, the debt level stabilized around the 6,600 to 6,700 million USD range through 2020 and most of 2021. From early 2022 through the end of 2023, total debt remained relatively constant, fluctuating marginally near 6,100 million USD. However, a notable and sharp rise occurred in the first quarter of 2024, with total debt increasing dramatically to approximately 9,436 million USD, maintaining this elevated level into the subsequent quarter at 9,468 million USD.
- Total Assets
- Total assets exhibited a robust upward trend during 2019, increasing from around 20,880 million USD in the first quarter to approximately 41,369 million USD by the end of that year. From 2020 to the end of 2021, total assets showed minor fluctuations but generally maintained levels in the 39,000 to 41,000 million USD range. However, starting in 2022, the asset base began a gradual decline, decreasing steadily each quarter and reaching approximately 38,000 million USD by the end of 2023. A significant and abrupt increase was observed in early 2024, with total assets surging to approximately 55,506 million USD and sustaining a similar level into the following quarter.
- Debt to Assets Ratio
- The debt to assets ratio exhibited a declining trend from 0.21 at the beginning of 2019 to a low of approximately 0.15 by mid-2021, indicating a reduction in leverage relative to asset size. Following this, the ratio stabilized around 0.16, showing minimal fluctuation during 2022 and 2023. In early 2024, the ratio increased slightly to 0.17, reflecting the sharp rise in total debt relative to assets during that period. Despite this increase, the ratio remains lower than the peak observed at the start of 2019.
- Overall Insights
- The financial data indicates a period of rapid growth in both total assets and total debt during 2019, followed by a phase of stabilization and slight asset contraction through 2022 and 2023. Leverage, as measured by the debt to assets ratio, decreased during the initial years and remained relatively stable until early 2024. The sudden increase in both total assets and total debt in the first quarter of 2024 suggests a major financial event or transaction impacting the balance sheet. This development has moderately increased leverage, although still within a level consistent with recent historical experience. Monitoring the sustainability and implications of this recent change will be important in subsequent periods.
Financial Leverage
Newmont Corp., 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Total Newmont stockholders’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Financial leverage1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||
| Freeport-McMoRan Inc. | ||||||||||||||||||||||||||||
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), 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).
1 Q1 2024 Calculation
Financial leverage = Total assets ÷ Total Newmont stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Assets
-
Total assets experienced an overall upward trend from March 31, 2019, to December 31, 2023, rising from approximately $20.9 billion to about $38.1 billion. This growth was relatively steady but modest, with intermittent periods of stabilization and slight decline, particularly noticeable from mid-2021 through the end of 2023. A significant and abrupt increase occurred between December 31, 2023, and March 31, 2024, where total assets jumped sharply to approximately $55.3 billion.
- Total Stockholders’ Equity
-
Stockholders’ equity followed a similar growth trajectory in the earlier periods, increasing substantially from around $10.5 billion at the start of 2019 to over $23 billion by the end of 2020. From 2021 through late 2023, equity values showed a declining trend, decreasing from about $23 billion to roughly $19 billion. The most notable change occurred at the end of the data series, when equity surged markedly to nearly $29 billion by March 31, 2024.
- Financial Leverage Ratio
-
The financial leverage ratio demonstrated a gradual downward trend from 1.99 in early 2019 to approximately 1.75 by mid-2021, indicating a modest reduction in leverage over this period. Subsequently, the ratio increased, reaching around 2.00 by December 2023, reflecting a slight rise in leverage. The ratio slightly decreased again to about 1.92 by March 31, 2024. These fluctuations suggest varying financing strategies and changes in the balance between debt and equity financing over time.
Interest Coverage
Newmont Corp., interest coverage calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net income (loss) attributable to Newmont stockholders | ||||||||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | ||||||||||||||||||||||||||||
| Less: Net income (loss) from discontinued operations | ||||||||||||||||||||||||||||
| Add: Income tax expense | ||||||||||||||||||||||||||||
| Add: Interest expense, net of capitalized interest | ||||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Interest coverage1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||
| Freeport-McMoRan Inc. | ||||||||||||||||||||||||||||
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), 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).
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)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT values show considerable volatility over the observed periods. Initially, a significant peak occurred in September 2019 at 2,887 million USD, followed by a sharp decline in December 2019 to 746 million USD. Subsequent quarters reveal fluctuations mostly ranging between moderate positive values and occasional negative figures. Notably, there is a considerable negative EBIT in December 2023 at -3,002 million USD, indicating a substantial downturn. The most recent quarter, March 2024, shows a partial recovery with EBIT returning to 528 million USD, although still below earlier peaks.
- Interest expense, net of capitalized interest
- Net interest expense remains relatively stable across the quarters, fluctuating modestly between 49 million USD and 93 million USD. Early periods show a slight decrease from 58 million USD in March 2019 to mid-50s in 2022, followed by a gradual increase towards 81 and 93 million USD in late 2023 and early 2024. This suggests consistent debt-related costs with a slight rise in recent quarters.
- Interest coverage ratio
- The interest coverage ratio illustrates a declining trend over time. After reaching high values exceeding 13 in late 2019 and early 2020, the ratio decreases steadily through subsequent quarters, dropping below 1 by December 2022 and becoming negative in late 2023 and early 2024. This negative coverage ratio reflects periods when EBIT was insufficient to cover interest expenses, signaling rising financial stress and reduced ability to meet interest obligations from operating earnings.
Overall, the data depict a company experiencing significant fluctuations in operating profitability with periods of strong earnings followed by steep declines. Despite relatively stable interest expenses, the decreasing and eventually negative interest coverage ratio highlights increasing difficulties in servicing debt. This trend, combined with volatile EBIT, points to heightened financial risks and operational challenges over the analyzed timeframe.