Dick’s Sporting Goods Inc (DKS)

Based on the solvency ratios of Dick’s Sporting Goods Inc, the company appears to have a very strong financial position with minimal debt relative to its assets, capital, and equity.

- The Debt-to-assets ratio has consistently remained very low, indicating that only a very small percentage of the company's total assets is financed by debt. This suggests a low level of risk associated with the company's debt obligations.

- Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also remained at negligible levels, implying that the company's capital structure is predominantly equity-funded rather than relying on debt. This is a favorable sign as it signifies lower financial risk for the company.

- The Financial leverage ratio, which indicates the extent to which a company uses debt to finance its operations, has been relatively stable and on the lower side over the years. This suggests that Dick’s Sporting Goods Inc has a conservative approach to leveraging debt.

Overall, based on these solvency ratios, Dick’s Sporting Goods Inc appears to be in a strong financial position with a conservative debt structure, which could provide stability and financial flexibility for the company in the long term.

---

Coverage ratios

Interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. Dick’s Sporting Goods Inc has shown a consistent and improving trend in its interest coverage ratio over the years.

As of January 28, 2023, the interest coverage ratio was 15.36, reflecting the company's ability to cover its interest expenses approximately 15 times over with its operating income. This ratio improved slightly to 15.53 by January 31, 2023.

By January 31, 2024, the interest coverage ratio significantly increased to 23.72, indicating a stronger ability to meet interest payments with operating income. This trend continued as of February 3, 2024, with a ratio of 22.10, suggesting continued financial strength.

The latest data as of January 31, 2025, shows a further improvement in the interest coverage ratio to 29.67, signaling a robust ability to cover interest expenses with operating income. Overall, Dick’s Sporting Goods Inc has maintained a healthy interest coverage ratio, demonstrating solid financial stability and capacity to meet its debt obligations through its operating earnings.