Cracker Barrel Old Country Store (CBRL)

The solvency ratios of Cracker Barrel Old Country Store indicate the company's ability to meet its long-term financial obligations and manage its debt levels effectively.

The debt-to-assets ratio has shown a slight upward trend over the past five years, increasing from 0.14 in 2021 to 0.22 in 2024. This suggests that the company has taken on more debt relative to its total assets, which could potentially increase its financial risk.

Similarly, the debt-to-capital ratio has also increased steadily over the same period, indicating that a higher proportion of the company's capital structure is financed through debt. This could indicate a potential strain on the company's capital resources and financial flexibility.

The debt-to-equity ratio has fluctuated over the years, with a notable increase in 2020 followed by a decrease in 2021 and subsequent increase in 2024. The ratio of 1.08 in 2024 indicates that the company has more debt than equity in its capital structure, which could signal potential financial vulnerability.

The financial leverage ratio, which measures the proportion of debt in the company's capital structure, has also shown an upward trend over the past five years. The ratio of 4.91 in 2024 indicates that the company's debt levels are almost five times higher than its equity, reflecting a high degree of financial leverage and potentially heightened financial risk.

In summary, the solvency ratios of Cracker Barrel Old Country Store suggest that the company has been gradually increasing its reliance on debt to fund its operations and investments, which could impact its financial stability and ability to weather economic downturns. Investors and stakeholders should closely monitor these ratios to assess the company's financial health and risk profile.

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Coverage ratios

Cracker Barrel Old Country Store's interest coverage ratio has shown a fluctuating trend over the past five years. In August 2024, the interest coverage ratio stands at 25.75, indicating the company's ability to cover its interest expenses approximately 25.75 times with its earnings before interest and taxes.

This represents a decrease from the previous year's exceptionally high ratio of 69.72 in July 2023. Despite this decline, the current ratio is still at a healthy level, suggesting a strong ability to meet its interest obligations.

Looking back further, in July 2022, the interest coverage ratio was 15.90, showing a significant improvement from the ratios of 6.53 in July 2021 and 4.64 in July 2020. These fluctuations indicate varying levels of profitability and financial stability for Cracker Barrel Old Country Store over the years.

Overall, while the recent decrease in the interest coverage ratio may warrant some attention, the company's current position suggests a solid financial standing with the capacity to easily meet its interest payments.