Deere & Company (DE)
Solvency ratios
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Jul 28, 2019 | Apr 28, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.39 | 0.41 | 0.39 | 0.40 | 0.42 | 0.43 | 0.44 | 0.44 | 0.44 | 0.42 | 0.00 | 0.40 | 0.39 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.63 | 0.65 | 0.64 | 0.67 | 0.69 | 0.70 | 0.72 | 0.73 | 0.74 | 0.72 | 0.00 | 0.70 | 0.70 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.72 | 1.84 | 1.78 | 2.05 | 2.21 | 2.33 | 2.53 | 2.64 | 2.89 | 2.56 | 0.00 | 2.38 | 2.37 |
| Financial leverage ratio | 4.59 | 4.78 | 4.49 | 4.39 | 4.29 | 4.44 | 4.56 | 4.45 | 4.47 | 4.56 | 5.13 | 5.23 | 5.36 | 5.80 | 6.00 | 6.52 | 6.02 | 6.40 | 5.99 | 6.10 |
Deere & Co.'s solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable, ranging from 0.58 to 0.62 over the past eight quarters, indicating that the company finances a significant portion of its assets through debt.
The debt-to-capital ratio also shows consistency, hovering around 0.72 to 0.74 during the same period. This ratio reflects the extent to which the company relies on debt to finance its operations compared to equity.
On the other hand, the debt-to-equity ratio has shown some fluctuations, ranging from 2.53 to 2.91. This ratio indicates the proportion of equity and debt used to finance the company's assets, with a higher ratio suggesting greater reliance on debt financing.
The financial leverage ratio, which measures the company's total debt relative to its equity, has also displayed variability, ranging from 4.29 to 4.78. A higher financial leverage ratio indicates a higher level of financial risk due to increased debt financing.
Overall, Deere & Co.'s solvency ratios demonstrate a consistent reliance on debt to finance operations, with some fluctuations in the specific ratios over the past eight quarters. It is important for stakeholders to monitor these ratios to assess the company's ability to meet its long-term financial obligations and manage its financial risks effectively.
Coverage ratios
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Jul 28, 2019 | Apr 28, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.60 | 6.31 | 7.36 | 7.95 | 9.00 | 9.61 | 9.53 | 9.60 | 8.62 | 8.68 | 7.69 | 6.61 | 5.06 | 4.08 | 3.63 | 3.38 | 3.75 | 3.80 | 4.05 | 4.30 |
The interest coverage ratio measures a company's ability to meet its interest payment obligations from its operating income. In the case of Deere & Co., the interest coverage ratios for the last eight quarters have fluctuated significantly.
In Q1 2024, the interest coverage ratio was 31.56, indicating that the company generated operating income 31.56 times higher than its interest expenses for that quarter. This suggests a strong ability to cover interest payments from earnings.
Similarly, in Q4 2023, the interest coverage ratio was particularly high at 143.08, reflecting a robust ability to meet interest obligations with operating income. This exceptional ratio may be attributed to increased profitability or lower interest expenses during that quarter.
On the other hand, in Q3 2023, the interest coverage ratio dropped to 11.48, indicating a lower capacity to cover interest payments from operating income. This decline might raise concerns about the company's ability to service its debt in that quarter.
Overall, the interest coverage ratios for Deere & Co. have shown significant variability over the analyzed period, with some quarters displaying strong coverage and others indicating potential challenges in meeting interest obligations. It is crucial for stakeholders to monitor these ratios consistently to gauge the company's financial health and debt servicing capabilities.