Designer Brands Inc (DBI)

The solvency ratios of Designer Brands Inc indicate a strong financial position over the past five years.

The debt-to-assets ratio has consistently been low, indicating that the company has minimal debt compared to its total assets. This suggests that Designer Brands Inc has a low financial risk and a good ability to cover its obligations using its assets.

Similarly, the debt-to-capital ratio has been consistently low, indicating that the company relies less on debt financing in relation to its total capital structure. This demonstrates a healthy balance between debt and equity in the company's capital mix.

The debt-to-equity ratio has been trending downward over the years, with a significant decrease from 0.55 in 2022 to 0.00 in 2024. This suggests that Designer Brands Inc has been reducing its reliance on debt financing and increasing its equity position, which is a positive sign for investors and creditors.

The financial leverage ratio has shown fluctuations over the years, but overall, it has been relatively stable. This ratio indicates the proportion of debt in the company's capital structure, and a lower ratio signifies less financial risk and dependence on debt funding.

Overall, Designer Brands Inc's solvency ratios reflect a healthy financial position with low debt levels, a balanced capital structure, and stable leverage ratios, indicating a strong ability to meet its financial obligations and sustain its operations in the long term.

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Coverage ratios

The interest coverage ratio indicates Designer Brands Inc's ability to cover its interest expenses with its operating income. The trend in the ratio over the past five years shows fluctuation, implying varying levels of financial health and risk.

In 2024, the interest coverage ratio stands at 2.21, indicating that the company's operating income is able to cover its interest expenses 2.21 times. Compared to the previous year, where the ratio was 11.57, there is a notable decrease in its ability to cover interest costs.

In 2023, the interest coverage ratio was relatively strong at 11.57, suggesting a healthy ability to meet interest obligations. The ratio improved from the prior year, 2022, where it was 6.37, indicating a positive trend in the company's financial health.

In 2021, the interest coverage ratio was significantly low at -24.33, which raises concerns about the company's ability to meet interest payments with its operating income. This negative ratio may indicate financial distress or exceptional circumstances impacting the company's profitability.

In 2020, the interest coverage ratio was robust at 14.28, reflecting a strong ability to cover interest costs with operating income. This indicates a favorable financial position for the company in that year.

Overall, the trend in Designer Brands Inc's interest coverage ratio suggests some fluctuations in its ability to cover interest expenses with operating income, with the company experiencing both strengths and weaknesses in different years. Further analysis of the underlying factors driving these changes would be necessary to better understand the company's financial performance and risk profile.