Buckle Inc (BKE)

Buckle Inc's solvency ratios indicate a consistently low level of debt relative to its assets, capital, and equity over the five-year period from February 3, 2020, to February 3, 2024. The company maintained a debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio of 0.00 throughout this period, reflecting a conservative approach to financing its operations.

However, the financial leverage ratio, which measures the proportion of a company's assets that are financed by debt, exhibited some fluctuation. The ratio ranged from 2.13 to 2.50 during this period, with the lowest level observed in 2021 and the highest in 2022. Overall, the financial leverage ratio remained relatively stable, indicating that Buckle Inc's debt levels were manageable and did not pose a significant solvency risk.

In conclusion, Buckle Inc's solvency ratios suggest that the company has maintained a strong financial position with minimal reliance on debt to support its operations.

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Coverage ratios

Based on the provided data, the interest coverage ratio of Buckle Inc has shown variations over the past five years.

In the most recent period, as of February 3, 2024, the interest coverage ratio was not disclosed. However, in the preceding year (January 28, 2023), the ratio was 12.73, indicating that the company generated operating income 12.73 times sufficient to cover its interest expenses. This implies a strong ability to meet interest obligations.

Looking back further, the interest coverage ratios for January 29, 2022, and January 30, 2021, were 16.02 and 7.06 respectively. The ratio increased significantly in 2022 compared to 2021, suggesting a better coverage of interest payments. However, in 2021, the ratio dipped to 7.06, indicating a lower ability to cover interest expenses compared to the other years.

Going back five years to February 1, 2020, the interest coverage ratio was 4.38, reflecting a weaker ability to cover interest expenses compared to the more recent years.

In summary, despite the absence of the interest coverage ratio for 2024, the trend over the past four years has shown fluctuations in the company's ability to cover interest payments, with varying levels of strength observed. It is crucial for Buckle Inc to assess and manage its interest coverage ratio effectively to ensure financial stability and meet its debt obligations.