Academy Sports Outdoors Inc (ASO)
Solvency ratios
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.10 | 0.12 | 0.12 | 0.13 | 0.13 | 0.14 | 0.15 | 0.14 | 0.15 | 0.15 | 0.15 | 0.17 | 0.18 | 0.28 |
| Debt-to-capital ratio | 0.20 | 0.25 | 0.25 | 0.26 | 0.26 | 0.30 | 0.31 | 0.31 | 0.32 | 0.33 | 0.32 | 0.37 | 0.41 | 0.59 |
| Debt-to-equity ratio | 0.25 | 0.33 | 0.34 | 0.35 | 0.36 | 0.44 | 0.45 | 0.45 | 0.47 | 0.50 | 0.47 | 0.59 | 0.70 | 1.43 |
| Financial leverage ratio | 2.39 | 2.74 | 2.69 | 2.76 | 2.82 | 3.07 | 3.06 | 3.09 | 3.13 | 3.40 | 3.20 | 3.54 | 3.94 | 5.06 |
The solvency ratios of Academy Sports Outdoors Inc indicate the company's ability to meet its financial obligations and cover its debts.
- Debt-to-assets ratio: This ratio has remained relatively stable around 0.10 to 0.18 over the past year, indicating that the company has low levels of debt compared to its total assets. This suggests that Academy Sports Outdoors Inc has a strong asset base to cover its debt obligations.
- Debt-to-capital ratio: The trend in this ratio shows a slight increase over the period, ranging from 0.20 to 0.59. This indicates that the company relies more on debt financing compared to equity to fund its operations and investments.
- Debt-to-equity ratio: The trend in this ratio shows an increase from 0.25 to 1.43, signifying a higher level of debt relative to equity in the company's capital structure. Higher ratios indicate higher financial risk and reliance on debt financing.
- Financial leverage ratio: This ratio has shown an increasing trend from 2.39 to 5.06, suggesting that the company's financial leverage has been rising over time. A higher financial leverage ratio indicates that the company is using more debt to finance its operations, which can increase financial risk.
Overall, the analysis of these solvency ratios suggests that while Academy Sports Outdoors Inc has a strong asset base and low debt levels relative to assets, the increasing trend in the debt-to-capital, debt-to-equity, and financial leverage ratios indicates a higher reliance on debt financing, which may increase the company's financial risk in the long term.
Coverage ratios
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 140.08 | 202.90 | 209.12 | 216.07 | 231.68 | 274.05 | 366.91 | 482.01 | 296.04 | 160.16 | 134.83 |
Academy Sports Outdoors Inc has shown a consistent and strong interest coverage ratio over the past few quarters. The interest coverage ratio measures the company's ability to meet its interest payments on debt obligations with its operating income.
The trend of increasing interest coverage ratios from 140.08 in February 3, 2024, to 482.01 in April 30, 2022, indicates that the company has been generating significantly more operating income relative to its interest expenses. This trend suggests a strong financial position as the company has a substantial buffer to cover its interest payments.
The high interest coverage ratios of above 200 in recent quarters (October 28, 2023 to February 3, 2024) indicate that Academy Sports Outdoors Inc has a comfortable cushion to manage its interest obligations. This high level of interest coverage provides reassurance to lenders and investors about the company's ability to service its debt without significant financial strain.
The overall trend of consistently high interest coverage ratios reflects positively on the financial health and stability of Academy Sports Outdoors Inc, indicating a strong ability to meet its interest obligations and suggesting a lower risk of financial distress due to debt-related issues.