Deere & Company (DE)
Solvency ratios
| Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.39 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.63 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.72 |
| Financial leverage ratio | 4.59 | 4.70 | 4.70 | 4.68 | 4.68 | 4.66 | 4.66 | 4.59 | 4.59 | 4.78 | 4.78 | 4.49 | 4.49 | 4.39 | 4.29 | 4.29 | 4.44 | 4.44 | 4.56 | 4.45 |
Deere & Company has shown a consistently low Debt-to-assets ratio of 0.00 over the past few quarters, indicating that the company's total debt is a very small portion of its total assets. This suggests a strong ability to cover its debt obligations with its assets.
The Debt-to-capital ratio has also consistently remained at 0.00, which indicates that Deere & Company primarily relies on equity financing rather than debt to fund its operations. This can be seen as a positive sign as it implies a lower financial risk and less dependence on borrowed funds.
Similarly, the Debt-to-equity ratio has remained at 0.00, indicating that the company has no debt relative to its equity. This reflects a strong financial position and a conservative approach to managing its capital structure.
Looking at the Financial leverage ratio, it has fluctuated slightly around the range of 4.29 to 4.78 over the quarters. This ratio signifies the company's level of financial risk and leverage, with a higher ratio indicating higher financial leverage. Despite the fluctuations, the ratio remains relatively stable and not alarmingly high, suggesting a manageable level of financial risk for Deere & Company.
Overall, based on the solvency ratios analyzed, Deere & Company appears to have a strong and stable financial position with minimal debt and a conservative capital structure, which enhances its ability to weather economic downturns and sustain long-term growth.
Coverage ratios
| Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.84 | 3.26 | 3.75 | 4.27 | 4.26 | 4.26 | 4.30 | 4.34 | 5.01 | 5.76 | 6.45 | 6.91 | 6.79 | 7.25 | 7.50 | 8.34 | 10.21 | 11.34 | 10.79 | 9.91 |
Deere & Company's interest coverage ratio has shown a gradual declining trend over the past few years, indicating a potential decrease in the company's ability to cover its interest expenses with its operating income. The interest coverage ratio, which measures the company's ability to meet its interest obligations, has decreased from 9.91 on May 1, 2022, to 2.84 on January 31, 2025.
A decreasing trend in the interest coverage ratio may raise concerns about Deere & Company's financial health and ability to make interest payments on its outstanding debt. A ratio below 1 suggests that the company is not generating enough operating income to cover its interest expenses, which could signal financial distress.
Investors and creditors typically view a declining interest coverage ratio as a red flag, indicating the need for close monitoring of the company's financial condition. It may also impact the company's ability to access credit at favorable terms in the future.
Overall, Deere & Company's declining interest coverage ratio highlights the importance of carefully assessing the company's financial performance and its ability to manage its debt obligations effectively.