BJs Wholesale Club Holdings Inc (BJ)
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 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 | 0.09 | 0.11 | 0.12 | 0.13 | 0.13 | 0.14 | 0.14 | 0.16 | 0.15 | 0.23 | 0.25 | 0.25 | 0.24 | 0.30 | 0.30 |
| Debt-to-capital ratio | 0.21 | 0.23 | 0.27 | 0.28 | 0.30 | 0.39 | 0.45 | 0.51 | 0.54 | 0.57 | 0.60 | 0.64 | 0.73 | 0.80 | 0.91 | 0.98 | 1.04 | 1.08 | 1.12 | 1.11 |
| Debt-to-equity ratio | 0.27 | 0.29 | 0.36 | 0.40 | 0.43 | 0.64 | 0.82 | 1.04 | 1.16 | 1.32 | 1.53 | 1.81 | 2.65 | 3.89 | 10.09 | 41.07 | — | — | — | — |
| Financial leverage ratio | 4.58 | 5.05 | 5.36 | 5.74 | 6.07 | 6.87 | 7.48 | 8.33 | 8.75 | 10.06 | 10.95 | 13.18 | 16.95 | 25.22 | 44.45 | 163.96 | — | — | — | — |
The solvency ratios of BJs Wholesale Club Holdings Inc indicate its ability to meet its long-term debt obligations.
1. Debt-to-assets ratio: This ratio has remained relatively stable over the past few quarters, indicating that BJs Wholesale Club Holdings Inc has maintained a low level of debt relative to its total assets. This suggests that the company has a strong asset base to cover its debt obligations.
2. Debt-to-capital ratio: The debt-to-capital ratio has exhibited an increasing trend over the quarters, indicating that the company's reliance on debt as a source of capital has been growing. This could potentially increase the financial risk for the company in the long term.
3. Debt-to-equity ratio: The debt-to-equity ratio has shown a significant increase over the quarters, reaching notably high levels in recent periods. This indicates that the company is heavily leveraged, with a higher proportion of debt compared to equity in its capital structure. Such high levels of debt could potentially pose risks to the company's financial stability and ability to meet its obligations.
4. Financial leverage ratio: The financial leverage ratio has also exhibited an increasing trend, suggesting that BJs Wholesale Club Holdings Inc has been relying more heavily on debt to finance its operations. High financial leverage ratios indicate increased financial risk and could potentially lead to challenges in servicing debt in the long run.
In summary, while the company's debt-to-assets ratio appears relatively stable and favorable, the increasing trends in the debt-to-capital, debt-to-equity, and financial leverage ratios signal a growing reliance on debt financing, raising concerns about the company's overall financial health and ability to manage its debt obligations effectively.
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 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 15.77 | 10.32 | 13.26 | 18.48 | 17.61 | 15.14 | 14.15 | 12.78 | 11.69 | 30.57 | 17.70 | 12.11 | 9.31 | 7.36 | 5.68 | 4.55 | 3.55 | 3.90 | 3.75 | 2.77 |
The interest coverage ratio for BJs Wholesale Club Holdings Inc has shown variability over the reporting periods, ranging from 2.77 to 30.57. A higher interest coverage ratio indicates the company is more capable of meeting its interest obligations from its operating income.
It is observed that the interest coverage ratio has generally been healthy, with some fluctuations. The company showed a particularly strong interest coverage of 30.57 in the period ending October 30, 2021, indicating a robust ability to cover its interest payments. However, the ratio declined in subsequent periods but remained above 10, which is generally considered satisfactory.
In recent periods, the interest coverage ratio seems to have trended downwards, raising the possibility of increased financial risk regarding the company's ability to cover interest expenses. It would be prudent for stakeholders to closely monitor this ratio in upcoming periods to assess the company's financial health and ability to service its debt effectively.