Bloomin Brands Inc (BLMN)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 24.98 | 8.37 | 12.12 | 14.78 | 306.85 |
Bloomin Brands Inc has displayed consistently low levels of debt compared to its assets, capital, and equity over the past five years, as evidenced by the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio, all of which were recorded at 0.00 for each year from 2020 to 2024. This signifies that the company has maintained a healthy balance in its capital structure, with minimal reliance on debt financing.
However, the financial leverage ratio for Bloomin Brands Inc has varied significantly during the same period. In 2020, the financial leverage ratio was relatively high at 306.85, indicating a high level of financial leverage and potential financial risk. Subsequently, the ratio decreased substantially in the following years, reaching 8.37 in 2023 before increasing to 24.98 in 2024. This fluctuation in the financial leverage ratio suggests changes in the company's capital structure and financial risk management practices over the years.
Overall, the solvency ratios suggest that Bloomin Brands Inc has effectively managed its debt levels, maintaining a conservative approach to leverage while ensuring financial stability and liquidity. However, the fluctuating financial leverage ratio warrants further examination to understand the underlying factors driving these changes and their implications for the company's financial health.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.06 | 6.23 | 4.94 | 4.34 | -2.68 |
Bloomin Brands Inc's interest coverage has shown fluctuations over the years based on the provided data. As of December 31, 2020, the interest coverage ratio was a concerning -2.68, indicating that the company's operating income was insufficient to cover its interest expenses. However, there was a significant improvement in the following years, with the interest coverage ratios increasing to 4.34 in December 31, 2021, 4.94 in December 31, 2022, and 6.23 in December 31, 2023. These improvements suggest a healthier financial position, as the company's ability to cover interest payments improved significantly.
However, there was a sharp decline in the interest coverage ratio to 0.06 as of December 31, 2024, which raises concerns about the company's ability to cover interest expenses with its operating income. It is important for Bloomin Brands Inc to closely monitor its financial performance and ensure that it maintains a healthy interest coverage ratio to avoid financial difficulties and potential liquidity issues in the future.