Academy Sports Outdoors Inc (ASO)
Solvency ratios
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | |
|---|---|---|---|---|
| Debt-to-assets ratio | 0.10 | 0.13 | 0.15 | 0.18 |
| Debt-to-capital ratio | 0.20 | 0.26 | 0.32 | 0.41 |
| Debt-to-equity ratio | 0.25 | 0.36 | 0.47 | 0.70 |
| Financial leverage ratio | 2.39 | 2.82 | 3.13 | 3.94 |
The solvency ratios of Academy Sports Outdoors Inc show a consistent trend of improvement over the past four years. The debt-to-assets ratio has declined steadily from 0.18 in January 2021 to 0.10 in February 2024, indicating that the company has been successful in reducing its debt levels relative to its total assets.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also decreased from 0.41 and 0.70, respectively, in January 2021 to 0.20 and 0.25 in February 2024. This suggests that Academy Sports Outdoors Inc has been able to reduce its reliance on debt financing in favor of equity, which is a positive sign for the company's long-term financial stability.
Furthermore, the financial leverage ratio has shown a consistent decrease from 3.94 in January 2021 to 2.39 in February 2024. This indicates that the company's financial risk has been decreasing over time, as it has been able to reduce its debt levels in relation to its equity.
Overall, the solvency ratios of Academy Sports Outdoors Inc reflect a strong financial position and a prudent approach to managing its debt levels, which bodes well for the company's future financial health and ability to weather economic downturns.
Coverage ratios
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | |
|---|---|---|---|---|
| Interest coverage | 140.08 | 231.68 | 153.27 | 68.74 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
Analysis of Academy Sports Outdoors Inc's interest coverage ratio over the past four years shows a strong trend of improvement. The ratio has increased from 68.74 in January 2021 to 140.08 in February 2024. This indicates that the company's ability to meet its interest obligations with its operating earnings has been consistently improving.
A higher interest coverage ratio indicates that the company is more capable of servicing its debt payments and is less vulnerable to financial distress due to interest payments.
Academy Sports Outdoors Inc's interest coverage ratio well above 1 signifies that the company's earnings are sufficient to cover its interest expenses, providing assurance to creditors and investors about its financial health and stability. The increasing trend in the interest coverage ratio reflects a positive trajectory for the company's financial performance and risk management regarding debt servicing.