Academy Sports Outdoors Inc (ASO)

Based on the solvency ratios provided, we can assess Academy Sports Outdoors Inc's ability to meet its long-term financial obligations:

1. Debt-to-assets ratio:
- January 28, 2023: 0.13
- January 31, 2023: 0.00
- January 31, 2024: 0.00
- February 3, 2024: 0.10
- January 31, 2025: 0.00

The debt-to-assets ratio measures the proportion of a company's assets that are financed by debt. A lower ratio indicates a lower financial risk as the company relies less on debt to fund its operations. Academy Sports Outdoors Inc has shown a consistent trend of decreasing this ratio over the years, reaching 0.00 most recently, which signifies a strong financial position in terms of asset coverage by debt.

2. Debt-to-capital ratio:
- January 28, 2023: 0.26
- January 31, 2023: 0.00
- January 31, 2024: 0.00
- February 3, 2024: 0.20
- January 31, 2025: 0.00

The debt-to-capital ratio shows the percentage of a company's capital that is financed by debt. Again, a lower ratio is favorable as it indicates a lower reliance on debt financing. Academy Sports Outdoors Inc has effectively reduced this ratio to 0.00 in the most recent period, demonstrating a strong capital structure with minimal debt funding.

3. Debt-to-equity ratio:
- January 28, 2023: 0.36
- January 31, 2023: 0.00
- January 31, 2024: 0.00
- February 3, 2024: 0.25
- January 31, 2025: 0.00

The debt-to-equity ratio evaluates the extent to which a company's operations are funded by debt compared to shareholders' equity. Once again, a lower ratio indicates a lower level of financial risk. Academy Sports Outdoors Inc has significantly decreased its debt-to-equity ratio over time, reaching 0.00 in the latest period, suggesting a strong equity position relative to debt.

4. Financial leverage ratio:
- January 28, 2023: 2.82
- January 31, 2023: 2.82
- January 31, 2024: 2.39
- February 3, 2024: 2.39
- January 31, 2025: 2.45

The financial leverage ratio provides insights into the level of a company's debt financing relative to its equity. A lower ratio is generally preferred as it indicates a lesser degree of financial risk. Academy Sports Outdoors Inc has maintained a relatively stable financial leverage ratio around 2.39 to 2.82, showcasing a balanced mix of debt and equity in its capital structure.

In summary, Academy Sports Outdoors Inc exhibits a strong solvency position with decreasing debt ratios and a well-balanced capital structure, suggesting a sound ability to fulfill its long-term financial obligations.

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Coverage ratios

Interest coverage ratio is a measure of a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.

For Academy Sports Outdoors Inc, the interest coverage ratio varied over the years based on the provided data.

- As of January 28, 2023, the interest coverage ratio was very strong at 231.68, indicating a significant capacity to cover interest payments with operating income.
- By January 31, 2023, the interest coverage ratio decreased to 18.62, which is still relatively healthy but significantly lower compared to the previous period.
- There was a further decline in the interest coverage ratio to 15.40 on January 31, 2024, reflecting a decrease in the company's ability to cover interest expenses with its operating income.
- However, by February 3, 2024, the interest coverage ratio improved substantially to 140.08, suggesting a strong recovery in the company's ability to meet its interest obligations.
- Lastly, as of January 31, 2025, the interest coverage ratio was at 15.60. This shows a slight improvement from the previous year but is still notably lower than earlier periods.

Overall, the interest coverage ratio of Academy Sports Outdoors Inc has shown fluctuations over the years, with both strong and weaker periods. It is important for investors and stakeholders to monitor this ratio to assess the company's financial health and ability to service its debt obligations.