Crocs Inc (CROX)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.28 | 0.35 | 0.51 | 0.50 | 0.16 |
| Debt-to-capital ratio | 0.42 | 0.53 | 0.74 | 0.98 | 0.38 |
| Debt-to-equity ratio | 0.74 | 1.13 | 2.81 | 54.78 | 0.62 |
| Financial leverage ratio | 2.62 | 3.19 | 5.50 | 109.72 | 3.85 |
Crocs Inc's solvency ratios have shown significant fluctuations over the years based on the provided data. The Debt-to-assets ratio has increased from 0.16 in 2020 to 0.51 in 2022 before decreasing to 0.28 in 2024. This indicates that the company's debt relative to its total assets has fluctuated, with a relatively low level of debt compared to assets in 2020 and 2024.
The Debt-to-capital ratio climbed from 0.38 in 2020 to 0.98 in 2021, then decreased to 0.42 in 2024. This ratio demonstrates the proportion of debt in the company's capital structure, showing a spike in 2021 before declining in the subsequent years.
The Debt-to-equity ratio experienced a staggering surge from 0.62 in 2020 to 54.78 in 2021, signifying a significant increase in debt relative to equity. However, this ratio has decreased in the following years, reaching 0.74 in 2024, suggesting a more balanced debt-to-equity mix compared to 2021.
The Financial leverage ratio, which reflects the company's debt relative to its equity, skyrocketed from 3.85 in 2020 to 109.72 in 2021, indicating a substantial increase in financial leverage. Subsequently, this ratio declined to 2.62 in 2024, showcasing an improvement in the company's financial leverage position over the years.
Overall, Crocs Inc has experienced fluctuations in its solvency ratios, with varying levels of debt compared to assets, capital, equity, and financial leverage from 2020 to 2024. These fluctuations suggest changes in the company's capital structure and financial risk profile over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 9.35 | 6.43 | 6.28 | 31.67 | 31.70 |
Crocs Inc's interest coverage ratio has shown consistency in the past years, with values around 30 in 2020 and 2021, indicating the company's ability to cover its interest expenses comfortably. However, there was a significant drop in 2022 and 2023, with the ratio falling to around 6, suggesting a potential decrease in the company's ability to cover interest payments with its operating income. The ratio improved slightly in 2024 to around 9. The declining trend in the interest coverage ratio in 2022 and 2023 might signal a need for the company to closely monitor its debt levels and profitability to ensure sustainable financial health.