Boot Barn Holdings Inc (BOOT)

The solvency ratios for Boot Barn Holdings Inc indicate a consistently strong financial position over the five-year period.

The Debt-to-assets ratio remained at 0.00 throughout the years, suggesting that the company's total debt was negligible in relation to its total assets. This indicates that Boot Barn Holdings Inc has little risk related to debt obligations impacting its asset base.

Similarly, the Debt-to-capital ratio and Debt-to-equity ratio were also at 0.00 across all years, demonstrating that the company relied very little on debt to finance its operations compared to its capital or equity. This implies that the company primarily used its own funds or equity to support its activities, which is a positive sign of financial stability.

The Financial leverage ratio showed a decreasing trend from 2.36 in 2021 to 1.78 in 2025. This decline indicates that the company reduced its reliance on debt over the years in relation to its equity, which is generally considered favorable as it signifies a lower level of financial risk and leverage.

Overall, based on these solvency ratios, Boot Barn Holdings Inc appears to have a solid financial foundation with minimal debt exposure and a conservative financing structure, which may enhance its ability to weather economic uncertainties and sustain long-term growth.

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Coverage ratios

Boot Barn Holdings Inc's interest coverage ratio has shown a fluctuating trend over the last few years. As of March 31, 2021, the interest coverage ratio was 9.18, indicating that the company's operating income was able to cover its interest expense approximately nine times.

However, there was a significant improvement in the interest coverage ratio in subsequent years. By March 31, 2024, the ratio had increased to 89.19, signaling a substantial enhancement in the company's ability to meet its interest obligations. This significant increase suggests that Boot Barn Holdings Inc has been able to generate much more operating income relative to its interest expenses.

It is worth noting that the interest coverage ratio for March 31, 2025, is reported as 0.00. This could indicate that the company's operating income in that period was insufficient to cover its interest expenses, possibly due to a decline in profitability or an increase in interest costs.

Overall, based on the trend observed, Boot Barn Holdings Inc has generally shown an improvement in its ability to cover interest expenses, indicating a strengthening financial position and lower financial risk in recent years. Investors and creditors may view this positively as it indicates the company's improved financial health and ability to meet its debt obligations.