Cavco Industries Inc (CVCO)
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 | — | 1.31 | 1.34 | 1.39 | 1.39 |
Cavco Industries Inc has consistently maintained a very strong solvency position based on the provided data. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at a very low level of 0.00 across the years, indicating that the company has no debt relative to its assets, capital, and equity. This signifies a low level of financial risk and a healthy balance sheet structure.
Additionally, the financial leverage ratio has shown a decreasing trend over the years, decreasing from 1.39 in 2021 to 1.31 in 2024. This decrease indicates that the company is relying less on debt to finance its operations, which can be seen as a positive sign of financial stability and prudent financial management.
Overall, Cavco Industries Inc's solvency ratios suggest a strong financial position with little to no debt exposure, reflecting a conservative financial strategy and a sound capital structure.
Coverage ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 330.79 | 121.79 | 327.58 | 287.46 | 119.36 |
The interest coverage ratio for Cavco Industries Inc has shown a positive trend over the past five years. As of March 31, 2021, the ratio stood at 119.36, indicating that the company's operating income was able to cover its interest expenses approximately 119 times. This ratio improved significantly to 287.46 by March 31, 2022, demonstrating a strengthened ability to meet interest obligations.
The trend continued to be positive in the subsequent years, with the interest coverage ratio reaching 327.58 by March 31, 2023, and further increasing to 330.79 by March 31, 2025. These high ratios suggest that Cavco Industries Inc has a robust ability to comfortably cover its interest expenses from its operating income, reflecting strong financial health and efficient management of debt obligations.
Overall, the consistent increase in the interest coverage ratio over the years indicates the company's improved capacity to service its debt and signifies a lower risk of financial distress related to interest payments.