Apogee Enterprises Inc (APOG)
Solvency ratios
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Mar 2, 2024 | Feb 29, 2024 | Nov 30, 2023 | Nov 25, 2023 | Aug 31, 2023 | Aug 26, 2023 | May 31, 2023 | May 27, 2023 | Feb 28, 2023 | Feb 25, 2023 | Nov 30, 2022 | Nov 26, 2022 | Aug 31, 2022 | Aug 27, 2022 | May 31, 2022 | May 28, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.07 | 0.00 | 0.00 | 0.11 | 0.00 | 0.16 | 0.00 | 0.19 | 0.00 | 0.19 | 0.00 | 0.22 | 0.00 | 0.26 | 0.00 | 0.29 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.12 | 0.00 | 0.00 | 0.18 | 0.00 | 0.25 | 0.00 | 0.29 | 0.00 | 0.30 | 0.00 | 0.35 | 0.00 | 0.41 | 0.00 | 0.44 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.13 | 0.00 | 0.00 | 0.22 | 0.00 | 0.34 | 0.00 | 0.42 | 0.00 | 0.43 | 0.00 | 0.54 | 0.00 | 0.70 | 0.00 | 0.80 |
| Financial leverage ratio | 2.41 | 2.26 | 1.81 | 1.85 | 1.88 | 1.88 | 1.96 | 1.96 | 2.10 | 2.10 | 2.25 | 2.25 | 2.31 | 2.31 | 2.43 | 2.43 | 2.66 | 2.66 | 2.77 | 2.77 |
The solvency ratios of Apogee Enterprises Inc indicate the company's ability to meet its long-term obligations and the extent to which it relies on debt financing.
1. Debt-to-assets ratio:
The trend in the debt-to-assets ratio shows a gradual decline from 0.29 in May 2022 to 0.00 in February 2024, indicating that the company has reduced its reliance on debt to finance its assets over the period analyzed. A ratio of 0.00 in the latter dates suggests that Apogee Enterprises had no debt relative to its assets, which is a positive sign of financial strength.
2. Debt-to-capital ratio:
Similarly, the debt-to-capital ratio follows a decreasing trend, from 0.44 in May 2022 to 0.00 in March 2024. This ratio also reaches 0.00 in the later dates, indicating that the company financed its operations without relying on debt for capital, which is favorable for solvency.
3. Debt-to-equity ratio:
The debt-to-equity ratio displays a declining trend as well, from 0.80 in May 2022 to 0.00 in March 2024. A ratio of 0.00 towards the later dates indicates that Apogee Enterprises had no debt in relation to its equity, signaling strong financial health and low financial risk.
4. Financial leverage ratio:
The financial leverage ratio, which measures the extent to which a company uses debt in its capital structure, shows a downward trend from 2.77 in May 2022 to 1.88 in March 2024. The increase in November 30, 2024, and February 28, 2025, suggests a slight rise in leverage, but overall, the trend indicates a decreasing reliance on debt financing.
In summary, the solvency ratios of Apogee Enterprises Inc demonstrate a strong financial position with decreasing reliance on debt over the period analyzed. This reduction in debt levels indicates improved financial stability and lower risk for the company in meeting its long-term obligations. The company's ability to operate with minimal debt suggests a healthy balance sheet and sustainable financial performance.
Coverage ratios
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Mar 2, 2024 | Feb 29, 2024 | Nov 30, 2023 | Nov 25, 2023 | Aug 31, 2023 | Aug 26, 2023 | May 31, 2023 | May 27, 2023 | Feb 28, 2023 | Feb 25, 2023 | Nov 30, 2022 | Nov 26, 2022 | Aug 31, 2022 | Aug 27, 2022 | May 31, 2022 | May 28, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 18.37 | 27.47 | 29.17 | 26.15 | 21.11 | 25.17 | 22.32 | 20.31 | 18.54 | 16.35 | 13.08 | 12.44 | 11.84 | 13.05 | 15.50 | 18.09 | 22.00 | 17.06 | 8.90 | 6.34 |
Apogee Enterprises Inc's interest coverage ratio has shown a generally positive trend over the specified time period, which signifies the company's ability to meet its interest obligations using its earnings before interest and taxes (EBIT).
The interest coverage ratio increased from 6.34 on May 28, 2022, to 29.17 on August 31, 2024, indicating a significant improvement in the company's ability to cover its interest expenses. This upward trend suggests that Apogee Enterprises Inc's earnings are sufficiently high to cover its interest payments comfortably.
While there were fluctuations in the interest coverage ratio over the period, the overall trajectory points towards a more stable financial position for the company. Investors and creditors may view this trend positively as it indicates a decreasing risk of default due to insufficient earnings to cover interest expenses.
However, it is important for Apogee Enterprises Inc to continue monitoring and maintaining a healthy interest coverage ratio to ensure its long-term financial sustainability and capacity to meet its debt obligations without facing financial distress.