Academy Sports Outdoors Inc (ASO)
Solvency ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.10 | 0.00 | 0.00 | 0.12 | 0.00 | 0.12 | 0.00 | 0.13 | 0.00 | 0.13 | 0.00 | 0.14 | 0.00 | 0.15 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.20 | 0.00 | 0.00 | 0.25 | 0.00 | 0.25 | 0.00 | 0.26 | 0.00 | 0.26 | 0.00 | 0.30 | 0.00 | 0.31 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.25 | 0.00 | 0.00 | 0.33 | 0.00 | 0.34 | 0.00 | 0.35 | 0.00 | 0.36 | 0.00 | 0.44 | 0.00 | 0.45 | 0.00 | 0.00 |
| Financial leverage ratio | 2.45 | 2.60 | 2.50 | 2.56 | 2.39 | 2.41 | 2.74 | 2.74 | 2.69 | 2.69 | 2.76 | 2.76 | 2.82 | 2.82 | 3.07 | 3.07 | 3.06 | 3.06 | 3.09 | 3.13 |
The solvency ratios of Academy Sports Outdoors Inc, as indicated by the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, provide insight into the company's financial stability and ability to meet its long-term obligations.
1. Debt-to-assets ratio: This ratio remained consistently low, with periodic increases from 0.00% to around 0.15%, indicating that the company has a minimal level of debt relative to its total assets over the period analyzed.
2. Debt-to-capital ratio: The debt-to-capital ratio fluctuated between 0.00% and 0.31%, with a downward trend towards the latter half of the period. This ratio suggests the proportion of the company's capital that is funded through debt, and the decreasing trend indicates a reduced reliance on debt financing relative to total capital.
3. Debt-to-equity ratio: The debt-to-equity ratio also showed a similar pattern to the debt-to-capital ratio, decreasing from around 0.45% to 0.25% over the period. This implies a lower level of financial risk as the company's equity base strengthened in relation to its debt obligations.
4. Financial leverage ratio: The financial leverage ratio showed a declining trend from 3.13 to 2.45, indicating that the company has been reducing its reliance on debt financing and becoming less leveraged over time. A lower financial leverage ratio signifies a lower level of financial risk and a stronger financial position.
Overall, the solvency ratios of Academy Sports Outdoors Inc suggest a stable financial position with a conservative approach to debt management and a gradual improvement in financial strength over the analyzed period.
Coverage ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 15.60 | 19.81 | 20.93 | 18.32 | 25.39 | 19.61 | 29.81 | 28.98 | 28.53 | 27.63 | 26.68 | 27.62 | 29.53 | 32.33 | 35.14 | 38.12 | 27.27 | 36.90 | 24.13 | 35.85 |
Interest coverage ratio is a financial metric used to evaluate a company's ability to meet its interest payments on outstanding debt. Higher values of the interest coverage ratio indicate a greater ability to handle the interest payments.
Analyzing the interest coverage ratios of Academy Sports Outdoors Inc from January 31, 2022, to January 31, 2025, we observe fluctuations in the company's ability to cover its interest expenses. The interest coverage ratio has varied from a high of 38.12 in October 29, 2022, to a low of 15.60 in January 31, 2025.
Overall, the interest coverage ratio for Academy Sports Outdoors has shown some volatility, with the ratio experiencing fluctuations above and below the ideal threshold of 1.5 to 2.0, which is generally considered indicative of a healthy interest coverage ability. The company's interest coverage ratio appears to be stronger in recent periods, with values predominantly above 20.
It is essential for investors and creditors to monitor the interest coverage ratio of a company to assess its ability to service its debt obligations. A consistently low interest coverage ratio may signal financial distress and indicate potential challenges in meeting interest payments in the future. Therefore, continuous monitoring and further analysis of Academy Sports Outdoors Inc's financial performance are advisable to gauge its financial stability and sustainability.