BJs Wholesale Club Holdings Inc (BJ)

From the solvency ratios of BJs Wholesale Club Holdings Inc over the past five years, there are clear trends indicating changes in the company's financial leverage and debt structures.

1. Debt-to-assets ratio: This ratio measures the proportion of the company's assets financed by debt. The decreasing trend from 0.25 in 2020 to 0.06 in 2024 indicates that BJs Wholesale Club Holdings Inc has been reducing its reliance on debt to fund its assets, reflecting a stronger financial position.

2. Debt-to-capital ratio: This ratio indicates the percentage of the company's capital structure that is financed by debt. The declining trend from 1.04 in 2020 to 0.21 in 2024 suggests that BJs Wholesale Club Holdings Inc has been reducing its debt relative to its total capital, implying a more conservative approach to financing its operations.

3. Debt-to-equity ratio: This ratio reflects the proportion of the company's financing that comes from debt relative to equity. The significant decrease from 2.65 in 2021 to 0.27 in 2024 indicates a substantial reduction in the company's debt compared to equity financing, signaling improved solvency and a healthier balance sheet.

4. Financial leverage ratio: This ratio measures the extent to which the company's operations are funded by debt. The decreasing trend from 16.95 in 2020 to 4.58 in 2024 suggests that BJs Wholesale Club Holdings Inc has been decreasing its reliance on debt to generate earnings, potentially lowering financial risk and improving stability.

Overall, the progression of these solvency ratios over the past five years for BJs Wholesale Club Holdings Inc demonstrates a positive trend towards a stronger financial position with reduced debt levels and improved balance sheet health.

---

Coverage ratios

The interest coverage ratio for BJs Wholesale Club Holdings Inc has shown a varying trend over the past five years. The ratio was 13.08 in 2024, indicating that the company generated operating income 13.08 times greater than its interest expenses for the year. This represents a decrease from the prior year's ratio of 18.41.

While the interest coverage ratio fluctuated over the years, it remained above 1 (indicating that the company was able to cover its interest expenses) and generally improved compared to previous years. The highest interest coverage ratio was observed in 2023 at 18.41, suggesting a stronger ability to fulfill interest payments.

Overall, the company's interest coverage appears to have been relatively healthy in recent years, with the ability to cover its interest obligations and even improving significantly in some years. However, the slight decrease in 2024 compared to the prior year warrants further monitoring to ensure the company's continued ability to meet its interest obligations comfortably.