BJs Wholesale Club Holdings Inc (BJ)

The solvency ratios of BJs Wholesale Club Holdings Inc indicate a strong financial position with consistently low levels of debt in relation to its assets, capital, and equity.

The Debt-to-assets ratio, which measures the percentage of total assets financed by debt, shows a minimal amount of debt relative to assets, ranging from 0.00 to 0.07 over the analyzed periods.

The Debt-to-capital ratio, reflecting the proportion of a company's capital that is financed through debt, also demonstrates a very low debt level, fluctuating between 0.00 and 0.30 during the periods examined.

The Debt-to-equity ratio, indicating the amount of debt used to finance a company's operations relative to the shareholders' equity, consistently displays a very low level of debt compared to equity, varying from 0.00 to 0.43 across the periods.

Lastly, the Financial leverage ratio, which evaluates the company's debt levels in relation to its equity, shows a decline over the years, signaling a reduction in leverage and enhanced financial stability, with the ratio decreasing from 6.07 to 3.82 from January 28, 2023, to January 31, 2025.

Overall, these solvency ratios suggest that BJs Wholesale Club Holdings Inc has maintained a prudent debt management strategy, with minimal reliance on debt financing and a solid financial foundation.

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Coverage ratios

Interest coverage is a critical financial ratio that indicates a company's ability to meet its interest payment obligations. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses.

Based on the data provided for BJs Wholesale Club Holdings Inc, we can see a trend in the interest coverage ratio over the specified periods:

- As of January 28, 2023, the interest coverage ratio was 18.41, indicating that the company's EBIT was 18.41 times its interest expenses. This represents a strong financial position with a high ability to cover interest payments.

- By the end of January 31, 2023, the interest coverage ratio decreased to 15.81, suggesting a slight dip in the company's ability to cover its interest expenses compared to the previous period.

- Subsequently, the interest coverage ratio continued to decline to 12.61 as of January 31, 2024, and then slightly increased to 13.08 by February 3, 2024.

- The most recent available data as of January 31, 2025, shows an interest coverage ratio of 15.00, indicating an improvement in the company's ability to cover interest payments compared to the previous periods.

Overall, BJs Wholesale Club Holdings Inc has demonstrated a fluctuating trend in its interest coverage ratio over the specified periods, with some variations in its ability to cover interest expenses. It is important for investors and stakeholders to monitor this ratio to assess the company's financial health and debt servicing capabilities.