Chewy Inc (CHWY)

1. Debt-to-assets ratio:
- The debt-to-assets ratio for Chewy Inc has consistently been 0.00 for the past five years. This indicates that Chewy has not utilized debt to finance its assets during this period. A low or zero debt-to-assets ratio is generally considered favorable as it signifies a lower financial risk for the company.

2. Debt-to-capital ratio:
- The debt-to-capital ratio data is not available for the year 2021 and 2020. However, the ratio has been 0.00 for the years 2022 and 2023. This suggests that Chewy has not relied on debt to fund its capital structure during these years. A lower debt-to-capital ratio implies a lower reliance on debt for financing, which can enhance financial stability.

3. Debt-to-equity ratio:
- The debt-to-equity ratio data is not available for the year 2021 and 2020. Similar to the debt-to-assets and debt-to-capital ratios, the debt-to-equity ratio has been 0.00 in 2022 and 2023. This indicates that Chewy has not used debt to finance its operations compared to equity during these years. A lower debt-to-equity ratio implies a lower level of financial leveraging and risk.

4. Financial leverage ratio:
- The financial leverage ratio for Chewy Inc has shown a significant decrease from 141.58 in 2022 to 15.72 in 2023 and further to 6.25 in 2024. The decreasing trend in the financial leverage ratio indicates a reduction in the proportion of debt used to finance the company's assets. A lower financial leverage ratio suggests a lower financial risk and indicates a more stable financial position for the company over time.

In conclusion, Chewy Inc's solvency ratios, including debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, reflect a conservative approach to debt financing and a strong financial position with minimal debt reliance over the analyzed years.

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Coverage ratios

The interest coverage ratio for Chewy Inc has fluctuated over the past five years. In January 2020 and January 2021, the company's interest coverage ratio was negative, indicating that Chewy's earnings were not sufficient to cover its interest expenses during those periods. This suggests a potential financial risk as the company may have faced challenges in meeting its debt obligations with its operating income.

However, in January 2022 and January 2023, the interest coverage ratio improved significantly to -33.14 and -41.66, respectively. While still negative, the ratios show a positive trend as Chewy's earnings began to better cover its interest expenses compared to the previous years.

By January 2024, the interest coverage ratio further improved to 14.46, indicating that Chewy's operating income was 14.46 times its interest expenses during that period. This shows a significant positive turnaround in the company's ability to meet its interest payments from its operating profits.

Overall, Chewy Inc's interest coverage ratio has shown improvement over the years, transitioning from negative figures to a positive ratio in January 2024, signifying a stronger financial position and better ability to service its debt obligations.