Chewy Inc (CHWY)
Solvency ratios
| Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | — |
| Financial leverage ratio | 13.24 | 6.37 | 4.98 | 6.25 | 7.40 | 7.90 | 11.94 | 15.72 | 15.19 | 20.18 | 37.37 | 141.58 | 33.25 | 26.89 | 27.51 | — | — | — | — | — |
Chewy Inc's solvency ratios indicate a strong financial position, with consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 across various reporting periods. This suggests that the company operates with minimal debt relative to its total assets and capital structure.
However, the financial leverage ratio has fluctuated significantly over time, ranging from 4.98 to as high as 141.58. The sharp increase in the financial leverage ratio in some periods could signal a higher level of financial risk and dependency on debt financing.
In general, Chewy Inc appears to have a conservative approach to leverage and debt management, as evidenced by the stable low debt-related ratios. However, investors may want to pay attention to the periods with high financial leverage ratios to assess the potential impact on the company's financial stability and risk profile.
Coverage ratios
| Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 38.58 | 28.79 | 26.51 | 14.46 | 6.47 | 18.72 | 20.95 | 21.15 | -7.79 | -26.59 | -50.21 | -44.04 | 5.46 | 6.13 | -1.89 | -44.70 | -135.53 | -146.68 | -283.55 | -440.57 |
Interest coverage is a financial ratio that measures a company's ability to pay its interest expenses on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses. A higher interest coverage ratio indicates a stronger ability to meet interest obligations.
Looking at Chewy Inc's interest coverage over the past several quarters, we see significant fluctuations. In the most recent quarter ending Oct 27, 2024, Chewy Inc had an interest coverage ratio of 38.58, indicating a strong ability to cover its interest expenses. This is a positive sign for the company's financial health.
However, the interest coverage ratio was lower in the previous quarter (Jul 28, 2024) at 28.79, but still at a healthy level. The trend over the past year shows that the interest coverage ratio has generally been improving, which suggests that Chewy Inc has been generating more earnings relative to its interest expenses.
It is important to note that there were a few quarters, such as in Feb 2, 2020, Aug 2, 2020, Nov 1, 2020, and Jan 31, 2021, where Chewy Inc had negative interest coverage ratios. This indicates that the company's earnings were insufficient to cover its interest expenses during those periods, raising concerns about its ability to meet debt obligations.
Overall, while Chewy Inc's recent interest coverage ratios have been generally positive, investors and analysts should continue to monitor this ratio closely to ensure that the company maintains a healthy balance between earnings and interest expenses.