Deere & Company (DE)
Solvency ratios
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.39 | 0.44 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.64 | 0.72 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 1.78 | 2.53 |
| Financial leverage ratio | 4.70 | 4.78 | 4.44 | 4.56 | 5.80 |
Deere & Company has exhibited a consistent improvement in its solvency ratios over the past five years. The debt-to-assets ratio, which measures the proportion of assets financed by debt, has decreased steadily from 0.44 in 2020 to 0.00 in 2024, indicating a reduction in reliance on debt for asset financing.
Similarly, both the debt-to-capital and debt-to-equity ratios have also trended downwards to 0.00 in 2024, reflecting a lower level of debt in relation to both capital and equity. This signifies a healthier balance between debt and equity in the company's capital structure.
Furthermore, the financial leverage ratio, which indicates the extent to which the company's operations are funded by debt, has decreased consistently from 5.80 in 2020 to 4.70 in 2024. This decline suggests that Deere & Company has been reducing its financial leverage and moving towards a more sustainable capital structure.
Overall, the improvement in Deere & Company's solvency ratios reflects a stronger financial position and a reduced risk of financial distress, demonstrating the company's ability to efficiently manage its debt levels and maintain a healthy balance sheet.
Coverage ratios
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.75 | 6.31 | 9.60 | 8.67 | 4.07 |
Deere & Company's interest coverage has displayed fluctuations over the past five years. The interest coverage ratio, which indicates the company's ability to meet its interest obligations with its earnings, was 3.75 in October 2024, representing a decrease from the previous year's ratio of 6.31. This decline suggests that Deere & Company's earnings may be less able to cover its interest expenses compared to the previous year.
Looking further back, in October 2022, the interest coverage ratio was 9.60, showing a robust ability to cover interest payments with earnings. This ratio decreased slightly in October 2021 to 8.67 but remained at a healthy level. In November 2020, the ratio was 4.07, indicating a lower ability to cover interest expenses compared to the more recent years.
Overall, while the company's interest coverage ratio has shown variability, it is essential for stakeholders to monitor this metric closely to assess Deere & Company's ongoing ability to meet its interest obligations.