Deere & Company (DE)
Solvency ratios
| Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 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 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 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 |
| Financial leverage ratio | 4.70 | 4.68 | 4.66 | 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 |
The solvency ratios of Deere & Company provide insights into the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing.
1. Debt-to-assets ratio: This ratio remained consistently low at 0.00 across the periods analyzed. A lower debt-to-assets ratio indicates that the company has a lower level of debt relative to its total assets, reflecting a conservative debt management strategy.
2. Debt-to-capital ratio: The debt-to-capital ratio also displayed a consistently low value of 0.00. This indicates that the company has not been heavily reliant on debt to finance its operations and investments, highlighting a strong capital structure with a greater proportion of equity funding.
3. Debt-to-equity ratio: The debt-to-equity ratio exhibited a relatively stable pattern, showing an increase from 1.72 to 2.89 over the periods analyzed. This increase suggests that the company has gradually taken on more debt relative to its equity, indicating a higher level of financial leverage and potential risk associated with debt repayment obligations.
4. Financial leverage ratio: The financial leverage ratio fluctuated over the periods, ranging from 4.29 to 6.52. A higher financial leverage ratio indicates a higher degree of financial risk and reliance on debt financing. The increasing trend in this ratio suggests that the company has been increasingly using debt to finance its operations and investments.
Overall, the consistent low values of the debt-to-assets and debt-to-capital ratios indicate a prudent approach to managing debt, while the increasing trend in the debt-to-equity ratio and financial leverage ratio highlight a potential increase in financial risk for Deere & Company as it relies more on debt financing.
Coverage ratios
| Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.75 | 4.31 | 4.95 | 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 |
Deere & Company's interest coverage ratio, which measures its ability to meet interest payments on its debt obligations, has shown a generally positive trend over the past several quarters. The ratio has improved steadily from 3.38 in February 2020 to 9.61 in October 2024.
A higher interest coverage ratio indicates that Deere & Company is in a better position to cover its interest expenses with its operating income. This trend suggests that the company's earnings are sufficient to comfortably service its debt obligations, which is a positive signal for creditors and investors.
Overall, the increasing trend in Deere & Company's interest coverage ratio reflects improving financial health and a reduced risk of default on its debt commitments. However, it is important to continue monitoring this ratio to ensure that the company maintains its ability to cover interest costs, especially during periods of economic uncertainty or changes in the interest rate environment.