Designer Brands Inc (DBI)
Solvency ratios
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.19 | 0.18 | 0.15 | 0.11 | 0.08 | 0.09 | 0.14 | 0.14 | 0.12 | 0.17 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.52 | 0.52 | 0.42 | 0.35 | 0.30 | 0.37 | 1.01 | 1.01 | 1.02 | 1.01 | — | — | — | — | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.08 | 1.07 | 0.74 | 0.55 | 0.42 | 0.59 | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | 5.73 | 5.46 | 4.64 | 4.82 | 4.61 | 5.66 | 5.82 | 5.01 | 4.89 | 5.32 | 6.26 | — | — | — | — | — | — | — | — | — |
Designer Brands Inc's solvency ratios have shown consistency in terms of debt levels relative to assets, capital, and equity. The debt-to-assets and debt-to-capital ratios have been stable at low levels, indicating minimal reliance on debt to finance assets or operations. However, there was a slight increase in the debt-to-equity ratio over the period, although it remained relatively low.
The financial leverage ratio fluctuated over the period, suggesting some variability in the company's overall leverage. Overall, Designer Brands Inc appears to maintain a balanced mix of debt and equity in its capital structure, with a prudent approach to managing its solvency and financial risk.
Coverage ratios
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.25 | 4.15 | 6.47 | 8.31 | 12.60 | 11.50 | 11.82 | 9.19 | 6.39 | 3.45 | -1.39 | -8.08 | -25.55 | -37.49 | -56.70 | -43.33 | 21.41 | 12.05 | 14.28 | 14.25 |
The interest coverage ratio of Designer Brands Inc has shown significant fluctuations over the past few reporting periods. The ratio indicates the company's ability to cover its interest expenses with its operating income.
From May 2019 to January 2021, the interest coverage ratio steadily increased from 14.25 to 11.82, suggesting an improving ability to meet interest obligations. However, starting from the reporting period in May 2021, the interest coverage ratio experienced a sharp decline, reaching negative territory in the period ending July 31, 2021.
The negative interest coverage ratios in the latter part of 2021 and early 2022 (ending May 1, 2021, and January 30, 2021) indicate that Designer Brands Inc was not generating sufficient operating income to cover its interest expenses during those periods. This is a cause for concern as it signifies potential financial distress and may raise questions about the company's solvency.
The subsequent improvement in the interest coverage ratio from July 30, 2022, to October 28, 2023, reaching a peak of 12.60, reflects a positive trend of increased ability to cover interest expenses with operating income. This improvement suggests a rebound in the company's financial performance and a stronger financial position.
Overall, the fluctuations in Designer Brands Inc's interest coverage ratio indicate varying levels of financial health and operational efficiency over the analyzed reporting periods. It is essential for the company to maintain a healthy interest coverage ratio to ensure financial stability and meet its debt obligations.