Bellring Brands LLC (BRBR)
Solvency ratios
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|
| Debt-to-assets ratio | 1.24 | 1.31 | 0.69 | 0.95 |
| Debt-to-capital ratio | 1.61 | 1.68 | — | — |
| Debt-to-equity ratio | — | — | — | — |
| Financial leverage ratio | — | — | — | — |
The solvency ratios of Bellring Brands Inc indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio, which measures the proportion of assets financed by debt, has shown an upward trend over the past five years, reaching 1.24 in September 2023 from 0.00 in September 2019. This suggests an increasing reliance on debt to fund the company's assets.
Similarly, the debt-to-capital ratio, which illustrates the extent to which a company is financed by debt relative to its total capital, has also exhibited an increasing trend, reaching 1.61 in September 2023. The lack of data for 2021 and 2022 limits a comprehensive analysis, but the continued increase may indicate a growing reliance on debt in the company's capital structure.
Unfortunately, there is no data available for the debt-to-equity ratio, which could provide further insights into the company's leverage. The financial leverage ratio, which compares the company's equity to its total assets, shows a leverage of 1.22 in September 2019, and the absence of subsequent data makes it challenging to assess the trend in leverage.
Overall, the increasing trend in the debt-to-assets and debt-to-capital ratios may raise concerns about the company's solvency and long-term financial stability. It would be advisable to closely monitor the company's leverage and debt management practices to ensure its financial health in the long run.
Coverage ratios
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|
| Interest coverage | 4.29 | 3.27 | 1.84 | 1.60 |
The interest coverage ratio for Bellring Brands Inc has shown a consistent upward trend from 2020 to 2023, reaching 4.29 in September 2023, indicating the company's strengthened ability to cover its interest expenses. This improvement suggests that the company's operating income is more than sufficient to cover its interest payments, reflecting positively on its financial stability and liquidity. The consistent increase in the interest coverage ratio over the past few years demonstrates an enhanced capacity to meet debt obligations and signifies an improved financial position for the company.