Albertsons Companies (ACI)

The presented data on Albertsons Companies’ solvency ratios indicates a consistent financial stance characterized by minimal leverage across the observed periods, with particular emphasis on the debt-related metrics. Notably, the Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio are all reported as zero throughout the entire timeline, suggesting an absence of debts or a structure that does not reflect traditional leverage ratios within the data scope provided.

The consistent zero values in these ratios point towards a hypothetical or simplified scenario, possibly representing a scenario where the company has no reported interest-bearing debt or these metrics have not been factored into the dataset. This neutrality in debt ratios implies a potentially unleveraged capital structure or a lack of debt data in the information set, which warrants further verification from detailed financial statements to confirm the actual financial stance.

Conversely, the Financial Leverage Ratio displays variability over the periods, ranging from a high of approximately 21.75 in May 2020 to a low of around 6.55 in August 2022, with subsequent fluctuations within a relatively moderate spectrum. The elevation to 36.89 in November 2022 indicates a substantial increase in leverage during that period, which might reflect a significant rise in debt or a change in the company's capital structure, although this contradicts the zero values reported in the other ratios. The decreasing trend from late 2022 onwards to below 8 by November 2024 suggests a strategic deleveraging or reduction in financial leverage over time.

Overall, the data reveals that from a conventional standpoint, Albertsons appears to have maintained a very low or negligible debt profile during the periods in question, with the exception of fluctuations in the financial leverage measure that could indicate episodic changes in leverage or accounting adjustments. This pattern could imply a conservative financing strategy, reliance on internal cash flows, or data limitations. For a comprehensive assessment, it would be necessary to corroborate these ratios with detailed balance sheet data and notes to the financial statements to understand the actual capital structure and risk profile of Albertsons Companies.

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Coverage ratios

The interest coverage ratio for Albertsons Companies has demonstrated notable fluctuations over the observed period. Beginning at a value of 3.02 on May 31, 2020, the ratio exhibited a gradual upward trend, reaching a peak of 6.07 by November 30, 2022. This increase indicates a progressively improved ability to meet interest obligations through earnings before interest and taxes (EBIT). Notably, the ratio remained elevated during this period, suggesting a period of relatively strong financial stability concerning interest payments.

However, after reaching its peak in late 2022, the ratio experienced a decline, falling to 3.35 by May 31, 2023, and then decreasing further to approximately 2.69 by February 29, 2024. This downward movement indicates a declining capacity to cover interest expenses solely through earnings, reflecting increasing financial leverage or reduced operating earnings relative to interest obligations.

In the most recent data points, the interest coverage ratio shows signs of stabilization, with values around 3.75 on May 31, 2024, and approximately 3.44 on February 28, 2025. These figures suggest that while the company's ability to service interest remains above the commonly considered threshold of 1.5 to 2.0, indicating manageable interest obligations, there is a noticeable decrease from its earlier peaks, pointing to a potential moderation in earnings resilience.

Overall, the trend reflects periods of strengthening financial capacity coupled with subsequent weakening, aligning with fluctuations in operating performance or strategic financial adjustments over time. The period signifies a generally maintained but somewhat volatile capacity to cover interest, emphasizing the importance of ongoing monitoring of earnings and debt management strategies.