Crocs Inc (CROX)

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	0.28	0.30	0.32	0.36	0.35	0.42	0.44	0.49	0.51	0.57	0.60	0.64	0.50	0.39	0.26	0.25	0.16	0.17	0.34	0.42
Debt-to-capital ratio	0.42	0.45	0.48	0.52	0.53	0.62	0.63	0.70	0.74	0.80	0.85	0.89	0.98	0.66	0.52	0.51	0.38	0.37	0.64	0.79
Debt-to-equity ratio	0.74	0.82	0.93	1.08	1.13	1.60	1.69	2.32	2.81	4.12	5.58	8.17	54.78	1.94	1.08	1.05	0.62	0.59	1.75	3.72
Financial leverage ratio	2.62	2.73	2.85	3.00	3.19	3.82	3.87	4.75	5.50	7.20	9.32	12.80	109.72	4.95	4.16	4.18	3.85	3.52	5.17	8.89

The solvency ratios of Crocs Inc show a mixed trend over the period provided. The Debt-to-assets ratio decreased from 0.42 on March 31, 2020, to 0.28 on December 31, 2024, indicating the company's decreasing reliance on debt to finance its assets.

Similarly, the Debt-to-capital ratio decreased from 0.79 on March 31, 2020, to 0.42 on December 31, 2024, reflecting a lower proportion of debt in the company's capital structure over time.

Conversely, the Debt-to-equity ratio exhibited a fluctuating pattern, spiking to as high as 54.78 on December 31, 2021, before gradually declining to 0.74 on December 31, 2024. This suggests a significant shift in the company's leverage and equity financing mix over the period.

The Financial leverage ratio followed a similar pattern, decreasing from 8.89 on March 31, 2020, to 2.62 on December 31, 2024, signifying a reduction in the company's financial risk and leverage position.

Overall, Crocs Inc has managed to improve its solvency position by reducing its reliance on debt and decreasing its leverage ratios, indicating a more stable financial structure by the end of the period analyzed.

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	9.34	8.42	7.63	6.89	6.43	6.03	6.15	6.08	6.28	8.31	10.84	17.31	31.67	42.08	50.66	49.16	31.70	21.01	14.88	13.33

The interest coverage ratio of Crocs Inc has followed a fluctuating trend over the reported periods. The ratio started at 13.33 in March 2020 and showed a consistent upward trend, reaching a peak of 50.66 in June 2021. This indicates that the company's operating income was more than sufficient to cover its interest expenses during this period.

However, from September 2021 onwards, the interest coverage ratio began to decline gradually, dropping to 6.08 in March 2023. This downward trend may suggest potential challenges for the company in meeting its interest obligations relative to its operating income.

While there was a slight improvement in the ratio in the subsequent periods, reaching 9.34 in December 2024, the overall trend indicates potential volatility in Crocs Inc's ability to cover its interest payments using its operating earnings.

It is essential for investors and analysts to closely monitor Crocs Inc's interest coverage ratio in future periods to assess the company's financial health and debt servicing capacity.