Cavco Industries Inc (CVCO)
Solvency ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.01 | 0.02 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.01 | 0.02 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.02 | 0.02 |
| Financial leverage ratio | 1.31 | 1.34 | 1.39 | 1.39 | 1.33 |
Cavco Industries Inc has consistently maintained a very low level of debt compared to its total assets, capital, and equity over the past five years, as indicated by a debt-to-assets ratio of 0.00, debt-to-capital ratio of 0.00, and debt-to-equity ratio of 0.00 in each of those years. This demonstrates a strong financial position and minimal reliance on borrowing to support its operations and growth.
However, it is worth noting that the financial leverage ratio has seen some fluctuations over the same period, ranging from 1.31 to 1.39. This ratio indicates the company's level of debt relative to its equity. While the financial leverage ratio has remained relatively stable, the slight variations could be due to changes in the company's financing structure over time.
Overall, based on the solvency ratios, Cavco Industries Inc appears to be in a robust financial position with low debt levels and a conservative approach to capital structure, which may contribute to its stability and ability to weather economic downturns.
Coverage ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 121.73 | 337.79 | 302.92 | 132.32 | 63.19 |
Cavco Industries Inc's interest coverage has exhibited fluctuations over the past five years, ranging from a low of 63.19 in 2020 to a high of 337.79 in 2023. The interest coverage ratio indicates the company's ability to meet its interest obligations based on its earnings before interest and taxes (EBIT). A higher interest coverage ratio implies that Cavco Industries Inc is more capable of servicing its debt obligations from its operating profits.
The significant increase in interest coverage from 2020 to 2023 suggests an improvement in the company's profitability and ability to cover its interest expenses. However, the sharp decrease in 2024 compared to the previous year indicates a potential decline in profitability or an increase in interest expenses relative to earnings. It is important for investors and stakeholders to monitor these trends and assess the company's overall financial health and debt management strategy.