Caleres Inc (CAL)
Solvency ratios
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.11 | 0.08 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.50 | 0.24 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 1.00 | 0.31 |
| Financial leverage ratio | 3.22 | 4.37 | 5.79 | 9.32 | 3.76 |
Based on the solvency ratios of Caleres Inc over the past five years, there is a consistent trend of decreasing debt levels relative to the company's assets, capital, and equity. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been at 0.00% in the most recent year, indicating that the company has either paid off its debt or has very minimal debt compared to its total assets, capital, and equity.
The significant drop in these ratios from the previous year suggests a strong improvement in Caleres Inc's solvency position, as the company has reduced its reliance on debt to finance its operations. The decrease in leverage ratios also supports this trend, with the financial leverage ratio dropping from 9.32 in 2021 to 3.22 in 2024.
Overall, these solvency ratios reflect a healthy financial position for Caleres Inc, indicating a lower financial risk and greater stability for the company.
Coverage ratios
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 648.18 | 15.03 | 6.65 | -10.06 | 173.02 |
The interest coverage ratio for Caleres Inc has shown significant fluctuations over the past five years. The ratio was notably high in February 2024 at 648.18, indicating the company's ability to cover its interest expenses 648 times over with its earnings before interest and taxes. This significant increase in the ratio from the previous year suggests a strong ability to meet interest obligations.
In January 2023, the interest coverage ratio was 15.03, reflecting a substantial decline compared to the prior year. This decrease may indicate a potential strain on the company's ability to cover its interest expenses with its operating income. The ratio further deteriorated in January 2022 to 6.65, signaling a continued decrease in the company's ability to cover its interest payments.
In January 2021, the interest coverage ratio fell to -10.06, indicating that the company's earnings were insufficient to cover its interest expenses, resulting in a negative coverage ratio. However, in February 2020, the ratio improved to 173.02, showing a strong recovery compared to the previous year.
Overall, the fluctuating trend in Caleres Inc's interest coverage ratio suggests varying levels of financial risk and operational performance over the years. It is crucial for investors and stakeholders to closely monitor this ratio to assess the company's ability to meet its interest obligations and manage its debt effectively.