Columbia Sportswear Company (COLM)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 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 | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.67 | 1.54 | 1.51 | 1.45 | 1.52 | 1.48 | 1.49 | 1.48 | 1.58 | 1.59 | 1.57 | 1.53 | 1.54 | 1.54 | 1.54 | 1.50 | 1.55 | 1.54 | 1.59 | 1.62 |
The solvency ratios of Columbia Sportswear Company, including the debt-to-assets ratio, debt-to-capital ratio, debt-to-equity ratio, and financial leverage ratio, have consistently remained at 0.00 over the specified periods from March 31, 2020, to December 31, 2024. This indicates that the company has not taken on any debt relative to its total assets, capital, or equity during these periods.
Furthermore, the financial leverage ratio, which measures the company's use of debt to finance its operations, started at 1.62 on March 31, 2020, and generally showed a decreasing trend over the years, reaching 1.45 by March 31, 2024. This decreasing trend suggests that Columbia Sportswear Company has been reducing its reliance on debt to fund its operations, indicating a potentially lower financial risk and greater financial stability over time.
In conclusion, based on the provided data, Columbia Sportswear Company appears to have maintained a strong solvency position with minimal debt relative to its assets, capital, and equity, while also showing a decreasing trend in financial leverage, which could indicate improved financial health and stability over the specified period.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 65.69 | 71.02 | 38.30 | 25.85 | 41.19 | 38.99 | 62.36 | 158.31 | 228.40 | 312.92 | 309.75 | 326.45 | 265.66 | 216.94 | 126.80 | 43.10 | 39.91 | 44.39 | 45.48 |
The interest coverage ratio measures the ability of a company to meet its interest payments on outstanding debt with its operating income. A higher ratio indicates that the company is more capable of covering its interest expenses.
Analyzing the interest coverage ratios of Columbia Sportswear Company over the last few years, we observe a consistent and healthy trend. The ratios have been generally strong, starting at around the mid-40s in early 2020 and increasing significantly to peak at over 300 in mid-2022. This indicates that the company had a substantial operating income relative to its interest expenses during this period.
However, starting in late 2022, the interest coverage ratio declined notably, dropping to around 25 in late 2023 before recovering somewhat in the following periods but remaining below the peak levels seen in mid-2022. This suggests a potential increase in interest expenses or a decrease in operating income during this time, which could be a cause for further investigation.
Overall, while the interest coverage ratios of Columbia Sportswear Company have shown fluctuations in recent periods, the company generally maintained a strong ability to cover its interest obligations with its operating income, indicating a relatively healthy financial position in managing debt payments. Monitoring this ratio over time will be crucial to assess the company's financial health and ability to meet its debt obligations.