Dick’s Sporting Goods Inc (DKS)
Solvency ratios
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.01 | 0.05 | 0.05 | 0.03 |
| Debt-to-capital ratio | 0.00 | 0.02 | 0.18 | 0.15 | 0.11 |
| Debt-to-equity ratio | 0.00 | 0.02 | 0.21 | 0.18 | 0.13 |
| Financial leverage ratio | 3.56 | 3.56 | 4.30 | 3.31 | 3.83 |
The solvency ratios of Dick’s Sporting Goods Inc over the past five years display a consistent and favorable trend towards lower leverage and debt levels.
1. Debt-to-assets ratio: The company has been successful in maintaining a very low debt-to-assets ratio over the years, reaching 0.00 in the most recent year (Feb 3, 2024). This indicates that the company's assets are primarily financed by equity rather than debt.
2. Debt-to-capital ratio: Dick’s Sporting Goods Inc has effectively reduced its debt-to-capital ratio from 0.18 in Jan 29, 2022, to 0.02 in Feb 3, 2024. This decrease signifies a lower reliance on debt to finance its operations relative to its capital structure.
3. Debt-to-equity ratio: The decreasing trend in the debt-to-equity ratio, from 0.21 in Jan 29, 2022, to 0.00 in Feb 3, 2024, demonstrates a shift towards less dependence on debt for funding the company's operations and growth.
4. Financial leverage ratio: The financial leverage ratio reflects a decreasing trend from 4.30 in Jan 29, 2022, to 3.56 in Feb 3, 2024. This indicates that the company has been reducing its reliance on debt financing in relation to its equity.
Overall, the solvency ratios of Dick’s Sporting Goods Inc suggest a strong and improving financial position, with a decreasing reliance on debt for capital structure and operations. This trend signifies a healthy balance sheet and improved solvency risk for the company.
Coverage ratios
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 22.10 | 15.36 | 35.18 | 15.19 | 22.08 |
The interest coverage ratio for Dick’s Sporting Goods Inc has fluctuated over the past five years, ranging from a low of 15.19 in January 2021 to a high of 35.18 in January 2022. The interest coverage ratio measures the company's ability to pay interest expenses on its debt using its operating income. A higher ratio indicates that the company is more capable of meeting its interest obligations from its earnings.
The significant increase in interest coverage from 15.19 in January 2021 to 35.18 in January 2022 suggests a notable improvement in the company's ability to cover its interest expenses. However, the ratio decreased to 15.36 in January 2023 before rebounding to 22.10 in February 2024. Overall, the company's interest coverage remains strong, indicating that Dick’s Sporting Goods Inc is effectively managing its debt and generating sufficient operating income to meet its interest payments.