Columbia Sportswear Company (COLM)

Columbia Sportswear Company's solvency ratios, which include the Debt-to-assets ratio, Debt-to-capital ratio, Debt-to-equity ratio, and Financial leverage ratio, indicate a strong financial position with minimal debt exposure over the years from 2020 to 2024.

1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets financed by debt. Columbia Sportswear Company consistently maintained a debt-to-assets ratio of 0.00 throughout the five-year period. This indicates that the company's assets were primarily funded through equity rather than debt, reflecting a low risk of financial distress due to debt obligations.

2. Debt-to-capital ratio: The debt-to-capital ratio reveals the extent to which a company's operations are funded by debt relative to its total capitalization. Similar to the debt-to-assets ratio, Columbia Sportswear's debt-to-capital ratio remained at 0.00 for the entire period, suggesting a conservative capital structure and a strong ability to meet financial obligations without relying heavily on debt.

3. Debt-to-equity ratio: The debt-to-equity ratio signifies the balance between a company's long-term debt and shareholder equity. Once again, Columbia Sportswear recorded a consistently low debt-to-equity ratio of 0.00 across all years, indicating a capital structure skewed towards equity financing, which bodes well for financial stability and lower financial risk.

4. Financial leverage ratio: The financial leverage ratio assesses the extent to which a company's operations are funded by debt. Despite minor fluctuations over the five-year period, ranging from 1.52 to 1.67, Columbia Sportswear maintained a relatively stable financial leverage ratio, reflecting a moderate level of financial risk and a healthy balance between debt and equity in its capital structure.

Overall, the solvency ratios for Columbia Sportswear Company demonstrate prudent financial management practices, a strong balance sheet structure, and a conservative approach to debt management, indicating a robust financial position and a lower risk of insolvency or financial distress.

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Coverage ratios

Based on the provided data, the interest coverage ratio for Columbia Sportswear Company has shown significant fluctuations over the years. In December 2020, the company had an interest coverage ratio of 55.40, indicating that it was able to cover its interest expenses 55.40 times over with its earnings before interest and taxes (EBIT).

The following year, in December 2021, the interest coverage ratio improved substantially to 447.37, reflecting a significant increase in the company's ability to cover its interest obligations. This indicates a strong financial position and suggests that the company had a substantial buffer to meet its interest payments.

In December 2022, the interest coverage ratio decreased to 158.31, although it was still at a comfortable level, indicating that the company's EBIT was 158.31 times higher than its interest expenses. This suggests that the company continued to have a strong ability to meet its interest obligations.

The data for December 2023 and December 2024 is not available (denoted by "—"), making it difficult to assess the company's interest coverage for those years. Additional information would be needed to understand the trend beyond 2022.

Overall, the interest coverage ratios for Columbia Sportswear Company indicate that the company has had varying levels of ability to cover its interest expenses in the years presented, with significant improvements seen in 2021 and continued strong performance in 2022. However, the lack of data for 2023 and 2024 restricts a thorough analysis of the company's interest coverage in those years.