Ethan Allen Interiors Inc (ETD)
Solvency ratios
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 | 0.00 |
| 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 | 0.00 |
| Financial leverage ratio | 1.53 | 1.54 | 1.53 | 1.55 | 1.54 | 1.55 | 1.53 | 1.60 | 1.58 | 1.64 | 1.63 | 1.74 | 1.77 | 1.86 | 1.88 | 1.97 | 1.94 | 1.93 | 1.83 | 1.87 |
The analyzed data indicates that Ethan Allen Interiors Inc exhibits a consistent severity in its solvency ratios over the specified period, primarily characterized by the absence of leverage related to debt. Specifically, the Debt-to-Assets ratio, Debt-to-Capital ratio, and Debt-to-Equity ratio are uniformly recorded at zero across all reported dates from September 2020 through June 2025. This suggests that the company has maintained a debt-free capital structure during this timeframe, indicating no reliance on external debt financing.
In contrast, the Financial Leverage Ratio shows a different perspective. It consistently exceeds unity, with values fluctuating between 1.53 and 1.97 throughout the period. This ratio measures the degree of financial leverage employed by the entity, calculated as total assets divided by shareholders’ equity. Values above 1 denote the presence of asset utilization beyond equity financing, implying some degree of leverage through other means such as retained earnings or internal financing.
Given that leverage ratios are above 1, but the debt ratios are zero, the most plausible interpretation is that Ethan Allen Interiors Inc relies primarily on internal funding sources and equity rather than debt, or possibly that the financial data notes exclude debt financing entirely, perhaps due to a conservative or debt-averse approach. This configuration results in a very low or nonexistent debt burden, suggesting that the company has maintained a highly solvent and low-risk capital structure.
Overall, Ethan Allen Interiors Inc’s solvency profile is characterized by negligible or zero debt liabilities and reliance on internal equity, as reflected by the debt ratios; while the leverage ratio indicates a moderate level of asset utilization relative to equity. This financial stance implies strong solvency and a conservative approach to leveraging, reducing financial risk associated with debt obligations.
Coverage ratios
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 287.13 | 297.18 | 300.26 | 318.99 | 318.02 | 371.24 | 453.60 | 528.15 | 626.65 | 688.01 | 711.93 | 715.98 | 690.97 | 623.82 | 556.77 | 493.02 | 137.09 | 33.23 | 17.16 | 6.58 |
The interest coverage ratio of Ethan Allen Interiors Inc exhibits a pattern characterized by significant fluctuations over the analyzed period. As of September 30, 2020, this ratio stood at 6.58, indicating that the company's earnings before interest and taxes (EBIT) were approximately 6.58 times the interest expenses, suggesting a comfortable capacity to meet interest obligations during that period.
Between September 2020 and December 2020, the ratio experienced a substantial increase, reaching 17.16, reflecting an improvement in earning capacity relative to interest expenses. The upward trend continued into the first quarter of 2021, with the ratio escalating to 33.23, and further sharply rising into the second quarter of 2021 to reach an impressive 137.09. Subsequently, the ratio reached even more elevated levels: 493.02 in September 2021 and peaking at around 556.77 in December 2021, indicating a marked enhancement in the company's ability to cover interest payments, likely due to strong earnings relative to debt service.
In the subsequent periods through 2022, the ratio maintained high levels, with values of 623.82 in March 2022, 690.97 in June 2022, and remaining elevated at 715.98 in September 2022 and 711.93 in December 2022. These figures suggest a period of robust financial health regarding interest obligations, likely supported by strong operating performance or reductions in interest expenses.
However, from early 2023 onwards, a downward trend begins. The ratio declines to 688.01 in March 2023, and further decreases to 626.65 in June 2023, then continues to fall through September 2023 (528.15), December 2023 (453.60), and into early 2024 with the ratio at 371.24. This declining pattern indicates a reduced margin of safety in meeting interest expenses, potentially due to declining earnings, increased debt levels, or both.
The most recent data from mid-2024 and mid-2025 show the ratio stabilizing at lower levels, with values of approximately 318.02 in June 2024, 318.99 in September 2024, and gradually decreasing further to 287.13 by June 2025. This sustained decrease suggests ongoing pressures on earnings capacity to comfortably cover interest costs, although the ratios remain above typical concern thresholds, implying that interest obligations are still generally manageable.
Overall, the interest coverage ratio for Ethan Allen Interiors Inc reflects a period of exceptional strength during 2021 and early 2022, characterized by extremely high ratios indicating very comfortable debt servicing capacity. Subsequently, the ratio demonstrates a gradual decline starting in 2023, which may point to reduced earnings or increased debt levels, warranting continuous monitoring to assess the company's ongoing ability to service its interest obligations adequately.