Capri Holdings Ltd (CPRI)
Solvency ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | — | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | — | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | — | 4.18 | 3.95 | 2.92 | 3.47 |
Based on the provided data, Capri Holdings Ltd shows consistent favorable trends in its solvency ratios over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been reported at 0.00 across the years 2021 to 2024, indicating that the company's total debt is either very low or non-existent compared to its assets and capital. This suggests a strong financial position with low solvency risk.
The Financial leverage ratio, which measures the company's reliance on debt financing, has decreased from 3.47 in 2021 to 2.92 in 2022, reflecting a reduction in the company's financial leverage. However, there was an increase in this ratio in 2023 and 2024, reaching 3.95 and 4.18 respectively. This indicates a higher proportion of debt in the company's capital structure during those years.
Overall, based on the available data, Capri Holdings Ltd seems to have a stable financial position with low levels of debt in relation to its assets, capital, and equity. However, the increase in the financial leverage ratio in 2023 and 2024 suggests a potential shift towards more reliance on debt financing during those periods.
Coverage ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | — | 64.50 | 34.25 | 55.22 | 1.07 |
Based on the provided data, Capri Holdings Ltd's interest coverage has shown significant fluctuations over the years. In March 2021, the interest coverage ratio was extremely low at 1.07, indicating that the company's earnings were only just enough to cover its interest expenses.
However, there was a remarkable improvement in the interest coverage ratio in the following years. By March 2022, the ratio surged to 55.22, suggesting a substantial increase in profitability relative to its interest obligations. This remarkable improvement in financial health was maintained in March 2023, with an interest coverage ratio of 34.25.
In the subsequent years, Capri Holdings Ltd continued to demonstrate strong interest coverage ratios, with the ratio reaching its peak in March 2024 at 64.50. This indicates a robust ability to meet interest payments from its operating earnings.
The data for March 31, 2025, is not available (\u2014), making it difficult to assess the most recent financial performance of the company in terms of interest coverage.
Overall, the trend in Capri Holdings Ltd's interest coverage ratio reflects both past challenges and subsequent improvements in managing its interest expenses relative to its earnings. The company's ability to maintain healthy interest coverage ratios in recent years suggests a stronger financial position and a lower risk of default on its debt obligations.