Burlington Stores Inc (BURL)

Based on the solvency ratios of Burlington Stores Inc provided in the table, it is evident that the company has consistently maintained a low debt level in relation to its assets, capital, and equity over the past five years, as indicated by the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all being at 0.00 each year.

However, the financial leverage ratio has fluctuated over the same period, ranging from 7.73 in the most recent year to 14.59 in the year ending January 30, 2021. This ratio measures the extent to which a company is using debt to finance its operations, with a higher ratio indicating higher financial leverage or reliance on debt.

The decreasing trend in the financial leverage ratio from 14.59 in 2021 to 7.73 in 2024 suggests that Burlington Stores Inc has reduced its financial leverage over time, indicating a potentially more conservative approach to capital structure management and lower financial risk.

Overall, the consistently low levels of debt relative to assets, capital, and equity, along with the declining financial leverage ratio, indicate a solid solvency position for Burlington Stores Inc with a conservative debt management approach.

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Coverage ratios

The interest coverage ratio for Burlington Stores Inc has shown fluctuations over the past five years. In the most recent fiscal year ending on February 3, 2024, the interest coverage ratio was 93.21, indicating that the company was able to cover its interest expenses approximately 93.21 times over. This reflects a strong ability to meet its interest obligations from its operating income.

However, in the fiscal year ending on January 30, 2021, the interest coverage ratio was negative, standing at -54.79. A negative interest coverage ratio suggests that the company's operating income was insufficient to cover its interest expenses during that period. This could be a cause for concern as it indicates potential financial distress.

Overall, the trend in the interest coverage ratio for Burlington Stores Inc shows variability, with significant improvements in some years and deteriorations in others. It is important for investors and stakeholders to closely monitor the company's ability to generate enough operating income to cover its interest expenses in order to assess its financial health and stability.