Dick’s Sporting Goods Inc (DKS)
Solvency ratios
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.02 | 0.04 | 0.05 | 0.05 | 0.06 | 0.05 | 0.05 | 0.05 | 0.05 | 0.06 | 0.23 | 0.03 | 0.10 | 0.06 | 0.05 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 | 0.06 | 0.14 | 0.18 | 0.18 | 0.15 | 0.13 | 0.14 | 0.15 | 0.16 | 0.17 | 0.52 | 0.11 | 0.30 | 0.20 | 0.17 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 | 0.06 | 0.17 | 0.21 | 0.21 | 0.17 | 0.14 | 0.16 | 0.18 | 0.19 | 0.21 | 1.09 | 0.13 | 0.42 | 0.25 | 0.20 |
| Financial leverage ratio | 3.56 | 3.89 | 3.54 | 3.41 | 3.56 | 3.77 | 4.17 | 4.20 | 4.30 | 3.16 | 2.79 | 3.10 | 3.31 | 3.57 | 3.71 | 4.76 | 3.83 | 4.22 | 3.92 | 3.79 |
The solvency ratios of Dick’s Sporting Goods Inc indicate a relatively stable financial position over the past 20 quarters. The debt-to-assets ratio has remained consistently low, indicating that the company’s total debt is well-managed in relation to its total assets. Similarly, the debt-to-capital ratio and debt-to-equity ratio have shown a consistent pattern of remaining at low levels, suggesting that Dick’s Sporting Goods relies less on debt financing and has a strong equity base.
The financial leverage ratio, which measures the company's ability to meet its financial obligations, has displayed some fluctuations but generally remained within a reasonable range. This ratio peaked at 4.76 in August 2020 but has since stabilized around 3.5 to 4.5, indicating that the company has managed its financial leverage effectively.
Overall, the solvency ratios suggest that Dick’s Sporting Goods Inc has maintained a solid solvency position, with a prudent management of debt levels and a healthy mix of equity in its capital structure. This reflects positively on the company's ability to meet its financial obligations and sustain its operations in the long term.
Coverage ratios
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 22.10 | 19.77 | 17.33 | 16.81 | 15.36 | 17.29 | 21.05 | 27.46 | 35.18 | 34.07 | 31.46 | 25.92 | 15.19 | 13.89 | 11.24 | 5.16 | 22.08 | 28.21 | 32.34 | 40.61 |
Interest coverage ratio is a financial metric used to evaluate a company's ability to meet its interest payments on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations from its operating income.
Based on the data provided for Dick’s Sporting Goods Inc, the interest coverage ratio has shown fluctuations over the analyzed periods. The interest coverage ratio ranged from a low of 5.16 to a high of 40.61 over the past twenty quarters.
The trend in the interest coverage ratio indicates fluctuations in the company's ability to cover its interest expenses. A higher interest coverage ratio, such as above 10, generally signifies that the company has sufficient earnings to cover its interest payments comfortably. On the other hand, a lower interest coverage ratio, especially below 1, may raise concerns about the company's financial health and its ability to meet its interest obligations.
An analysis of Dick’s Sporting Goods Inc interest coverage ratio suggests that the company, overall, has had relatively strong interest coverage, with the ratio staying above 10 for most of the periods. However, there were a few quarters where the interest coverage ratio dipped below this benchmark, which could be a point of attention for investors and stakeholders.
In conclusion, monitoring Dick’s Sporting Goods Inc's interest coverage ratio over time can provide insights into the company's financial stability and its ability to handle its debt obligations. It is essential for investors to consider this metric alongside other financial ratios and performance indicators when evaluating the company's financial health.