Deere & Company (DE)
Solvency ratios
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.70 | 4.70 | 4.78 | 4.78 | 4.44 |
Deere & Company's solvency ratios suggest a strong financial position with consistently low levels of debt relative to assets, capital, and equity over the period from October 31, 2022, to October 31, 2024. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio were all at 0.00% throughout this period, indicating that the company has minimal debt obligations in relation to its total assets, capital, and equity.
Furthermore, the Financial leverage ratio remained relatively stable within the range of 4.44 to 4.78 during the same timeframe. This indicates that Deere & Company relies more on equity financing rather than debt to support its operations and investments. A lower financial leverage ratio is generally seen as a positive indicator of a company's financial health and ability to meet its debt obligations.
Overall, the consistent and low levels of debt ratios coupled with a moderate financial leverage ratio suggest that Deere & Company has a solid financial foundation and is well-positioned to weather economic downturns or financial challenges.
Coverage ratios
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | |
|---|---|---|---|---|---|
| Interest coverage | 3.75 | 3.75 | 6.31 | 6.31 | 9.59 |
Based on the provided data, the interest coverage ratio for Deere & Company has been gradually declining over the years. In October 2022, the interest coverage ratio stood at 9.59, indicating that the company generated enough operating income to cover its interest expenses approximately 9.59 times. However, by October 2024, the interest coverage ratio had decreased to 3.75, suggesting a decrease in the company's ability to cover its interest payments from its operating income.
A declining trend in the interest coverage ratio may raise concerns about the company's financial health and ability to meet its debt obligations. A lower interest coverage ratio implies that the company may be facing challenges in generating sufficient earnings to cover its interest expenses, potentially indicating increased financial risk.
It is crucial for investors and stakeholders to closely monitor Deere & Company's interest coverage ratio and assess the factors contributing to its decline to make informed decisions regarding the company's financial stability and risk profile.