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: Assets
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Price to Operating Profit (P/OP) since 2005
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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).
The analyzed financial indicators reveal several noteworthy trends over the examined quarters. The measures of leverage and solvency display a gradual reduction in debt reliance and an improvement in coverage of interest obligations.
- Debt to equity ratio
- This ratio initially fluctuated between 0.99 and 1.23 in 2013 and 2014, showing moderate variability in the company's use of debt relative to equity. From early 2015 onward, the ratio demonstrated a consistent downward trend, reaching approximately 0.61 by March 2017. This indicates a declining proportion of debt financing relative to equity and suggests a strengthening equity base or a strategic reduction in debt levels.
- Debt to capital ratio
- The debt to capital ratio paralleled the decline observed in the debt to equity metric. Early quarters from 2013 through 2015 maintained levels close to 0.5 or slightly above, indicating about half of the capital structure was funded through debt. From 2016 forward, it contracted to around 0.38, reinforcing the trend of decreasing financial leverage and signaling enhanced capital structure stability.
- Debt to assets ratio
- This ratio, reflecting the portion of assets financed through debt, remained relatively stable with minor fluctuations between 0.25 and 0.39. While some quarters in 2013 and 2014 saw increases up to approximately 0.39, the period after 2015 shows a reduction to about 0.25, signaling a decline in the dependency on debt financing backed by company assets.
- Financial leverage ratio
- Financial leverage exhibited modest variation, ranging roughly from 2.35 up to 3.51 during the period. The highest leverage was observed in early 2015, but an overall decreasing trend is visible by March 2017, where the ratio falls to approximately 2.39. This suggests a moderate reduction in the extent to which assets are financed by debt, aligning with the trends in debt-related ratios.
- Interest coverage ratio
- The interest coverage ratio, indicating the company's ability to service interest expenses, showed notable volatility. Although generally maintaining values above 8, a significant spike occurred in mid to late 2015 and intermittently through 2016, reaching a peak of 18.58. This reflects periods of substantially improved capability to meet interest obligations, possibly due to increased earnings or reduced interest expenses. However, the ratio declined to 9.56 by the first quarter of 2017, implying a reversion towards a lower but still adequate coverage level.
Overall, these financial metrics illustrate a consistent strategic move towards less leveraged financing, with a strengthening financial position through reduced reliance on debt. Additionally, the company's ability to cover interest expenses remained robust despite some fluctuations, suggesting effective management of earnings and debt servicing costs over the period.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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).
1 Q1 2017 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total debt
- The total debt exhibited a generally fluctuating trend from the first quarter of 2013 through the first quarter of 2017. Initially, debt increased moderately from $5,088 million in March 2013, peaking near $6,262 million in September 2013, before decreasing to approximately $5,083 million by December 2014. A significant surge occurred in mid-2015 when total debt escalated sharply to around $18,000 million by June 2015. Subsequently, the debt gradually declined over the following quarters, reaching approximately $13,152 million by March 2017. This pattern indicates a period of aggressive borrowing followed by partial deleveraging.
- Shareholders’ equity
- Shareholders’ equity remained relatively stable between 2013 and early 2015, fluctuating around $5,000 million. A pronounced increase began in the second quarter of 2015, with equity rising steeply to over $18,000 million by mid-2015. This upward trend continued steadily, culminating at around $21,706 million in March 2017. The substantial growth in equity during this period suggests capital infusions or significant retained earnings accumulation.
- Debt to equity ratio
- The debt to equity ratio fluctuated close to unity through 2013 and 2014, ranging approximately between 0.99 and 1.23. In 2015, it declined sharply to below 1.0, coinciding with the surge in shareholders’ equity and the normalization of total debt. From 2015 onward, the ratio steadily decreased, reaching a low of about 0.61 by the first quarter of 2017. This decreasing ratio indicates improved financial leverage and a stronger equity base relative to debt.
- Overall analysis
- The data reveal a period of financial restructuring beginning in mid-2015, characterized by a sharp rise in both debt and equity, likely reflecting a major financing event or corporate transaction. Subsequently, the company reduced its debt levels moderately while substantially increasing equity, resulting in an improved debt to equity ratio. This trend points to a stronger balance sheet and a more conservative capital structure entered into by the first quarter of 2017.
Debt to Capital
Reynolds American Inc., debt to capital calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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).
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 over the observed periods reveals notable trends in the company’s capital structure, particularly regarding total debt, total capital, and the debt to capital ratio.
- Total Debt
- The total debt values fluctuate significantly across quarters. Initially, total debt shows a gradual increase from $5.1 billion in March 2013 to a peak around $6.3 billion in September 2013, followed by a decrease towards the end of the 2013 fiscal year. Throughout 2014, total debt remains relatively stable, fluctuating between approximately $5.1 billion and $5.9 billion. In the first quarter of 2015, a sharp and substantial increase in total debt occurs, surging to around $18 billion. Subsequently, total debt demonstrates a declining trend from June 2015 through March 2017, reducing steadily from approximately $18 billion to about $13.2 billion. This pattern suggests a significant financing event or acquisition followed by systematic debt reduction.
- Total Capital
- Total capital mirrors some of the debt movements but with less volatility. The capital base edges up modestly from roughly $10.2 billion in early 2013 to about $11.3 billion by September 2013, then declines to below $10 billion by year-end 2014. The capital base then undergoes a large jump in the first quarter of 2015, increasing to over $36 billion, which aligns with the surge in total debt. From mid-2015 onwards, total capital stabilizes in the $34.8 billion to $35.1 billion range, showing a relatively stable capital structure after the significant increase in early 2015.
- Debt to Capital Ratio
- This ratio generally reflects the company's leverage and trends correspondingly to debt and capital movements. During 2013 and 2014, the debt to capital ratio hovers around 0.5 to 0.55, indicating a balanced leverage position. It dips slightly below 0.5 in the latter part of 2015, following the peak in capital, suggesting a relatively lower proportion of debt financing in the capital structure. From early 2016 through to March 2017, the ratio decreases steadily from approximately 0.39 to 0.38, indicating ongoing deleveraging. This decline in leverage corresponds to the reduction in total debt while capital remains stable.
Overall, the data illustrates a period of stability with moderate fluctuations in leverage through 2013 and 2014, followed by a major increase in both debt and capital in early 2015, likely due to a significant financial transaction. Post-2015, efforts appear to focus on decreasing leverage by paying down debt, as evidenced by a declining debt to capital ratio and reduced total debt, while maintaining a substantial capital base. This reflects a strategic shift towards lower financial risk and a more conservative capital structure.
Debt to Assets
Reynolds American Inc., debt to assets calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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).
1 Q1 2017 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- Over the observed period, total debt exhibited a generally volatile pattern with notable fluctuations. Initially, there was a gradual increase from approximately $5.1 billion to a peak of $6.3 billion by the third quarter of 2013, followed by a decline back to around $5.1 billion by the end of 2014. Subsequently, a significant surge occurred in mid-2015, reaching a peak of around $18 billion. After this peak, total debt steadily decreased during late 2015 and throughout 2016, stabilizing near $13.1 billion by the first quarter of 2017.
- Total Assets
- Total assets showed fluctuations throughout the periods measured. Initially, asset levels ranged between approximately $15.3 billion and $16.8 billion, without a clear directional trend through 2014. In 2015, assets experienced a sharp increase, reaching over $54 billion, similar to the pattern observed in total debt. After this surge, assets slightly declined but remained above $50 billion through the subsequent quarters until early 2017, indicating an overall expanded asset base post-2015.
- Debt to Assets Ratio
- The debt to assets ratio reflected the relative leverage over time. Initially, this ratio increased from 0.30 to roughly 0.38 in late 2013, indicating higher leverage during this period. It then decreased gradually to near 0.32 in early 2015, stabilizing at approximately 0.33 through late 2015. From early 2016 onwards, the ratio notably decreased to about 0.25-0.26, suggesting a reduction in relative leverage despite the elevated absolute values of debt and assets seen after 2015.
- Summary of Observations
- The data reveals a period of increased borrowing and asset accumulation around 2015, after which deleveraging and asset stabilization occurred. The peak in debt and assets in 2015 likely corresponds to an event causing a balance sheet expansion. The subsequent reduction in debt to assets ratio indicates improved balance sheet strength or asset growth outpacing liabilities. Overall, the company appears to have managed a significant capital structure adjustment within these periods, leading to a more conservative leverage position by early 2017.
Financial Leverage
Reynolds American Inc., financial leverage calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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).
1 Q1 2017 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable fluctuations and trends in key financial metrics over the examined periods. The focus is on total assets, shareholders’ equity, and financial leverage ratio, providing insight into the company’s asset base, equity position, and leverage dynamics.
- Total Assets
- Total assets exhibited variability across the quarters, starting at $16,778 million and showing a general decline with intermittent increases until the end of 2014, where a significant spike occurred, reaching $54,558 million in June 2015. This sharp increase was sustained through 2015 with values above $53,000 million, followed by a gradual decline towards the end of 2016 and early 2017, stabilizing around $51,959 million. The sudden surge mid-period suggests a major acquisition, asset revaluation, or restructuring impacting the balance sheet significantly.
- Shareholders’ Equity
- Shareholders' equity remained relatively stable in the earlier quarters, fluctuating modestly between approximately $4,500 million and $5,100 million until early 2015. A parallel sharp increase corresponds with the total assets’ surge, with equity jumping to over $18,000 million in early 2015 and continuing to increase gradually, peaking above $21,700 million by early 2017. This rise in equity indicates strengthened capital base, possibly reflecting retained earnings accumulation or issuance of additional equity alongside the asset growth.
- Financial Leverage Ratio
- The financial leverage ratio generally oscillated between approximately 3.0 and 3.5 during the period from 2013 through 2014, with slight declines toward the end of 2014. Post the increase in total assets and equity in 2015, the leverage ratio declined noticeably to around 2.9 and continued a gradual downward trend to roughly 2.35 by late 2016, slightly increasing to 2.39 in early 2017. The reduction in leverage reflects a relative decrease in debt compared to equity, indicating a more conservative financing structure over time after the expansion phase.
Collectively, the data suggest that the company underwent a significant transformation around mid-2015, marked by a substantial increase in total assets and shareholders’ equity. Subsequent periods show efforts to maintain a stronger equity base and reduce reliance on financial leverage, implying a strategic focus on stabilizing the capital structure following expansion activities. The movements in financial leverage ratio corroborate a trend toward lower risk through decreased leverage in recent quarters.
Interest Coverage
Reynolds American Inc., interest coverage calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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).
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 figures display notable volatility over the observed periods. Initial quarters of 2013 show values ranging between 526 million and 891 million US dollars, with a clear trough at the end of 2013. Subsequently, there is a gradual recovery and substantial increase, peaking sharply at 4,344 million in the second quarter of 2015. This spike may indicate an extraordinary event or adjustment during that quarter. After this peak, EBIT values stabilize in the range of approximately 589 million to 1,518 million US dollars through late 2016 and early 2017, indicating a return to more typical operating performance levels.
- Interest and debt expense
- The interest and debt expense steadily increased over the periods, starting at around 59 to 66 million US dollars in early 2013, rising to a peak of 189 million US dollars in the third quarter of 2015 corresponding to the time frame surrounding the EBIT peak. Afterwards, the expense moderates somewhat, settling in the 149 to 174 million US dollars range in the latest quarters. This pattern suggests periods of increased borrowing or rising interest costs followed by stabilization.
- Interest coverage ratio
- The interest coverage ratio demonstrates fluctuation aligned with changes in EBIT and interest expenses. The ratio mostly remains above 8, peaking significantly at 18.58 in the first quarter of 2016, shortly after the EBIT surge in 2015, indicating strong ability to cover interest obligations during that period. Conversely, lower values closer to 8.39 and 9.56 in some quarters indicate a relative decline in coverage resilience. Overall, the trend reveals periods of improved earnings capacity to meet interest expenses interspersed with tighter coverage ratios, reflecting varying operational profitability and cost of debt over time.