National Vision Holdings Inc (EYE)

Solvency ratios

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 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Debt-to-assets ratio 0.20 0.24 0.23 0.24 0.24 0.24 0.24 0.23 0.24 0.25 0.25 0.29 0.27 0.27 0.28 0.00 0.26 0.00 0.00 0.00
Debt-to-capital ratio 0.35 0.39 0.37 0.38 0.38 0.38 0.38 0.36 0.37 0.37 0.39 0.44 0.41 0.42 0.43 0.00 0.40 0.00 0.00 0.00
Debt-to-equity ratio 0.53 0.64 0.59 0.61 0.61 0.60 0.61 0.57 0.59 0.60 0.63 0.80 0.69 0.72 0.75 0.00 0.68 0.00 0.00 0.00
Financial leverage ratio 2.62 2.70 2.57 2.58 2.54 2.53 2.56 2.45 2.48 2.43 2.52 2.73 2.57 2.67 2.70 2.82 2.62 2.72 2.68 2.69

National Vision Holdings Inc's solvency ratios indicate the company's ability to meet its financial obligations and the extent of its leverage. Over the past years, the debt-to-assets ratio has ranged from 0.20 to 0.29, showing that between 20% to 29% of the company's assets were financed by debt. The debt-to-capital ratio has fluctuated between 0.35 to 0.44, indicating that debt represents between 35% to 44% of the company's capital structure. The debt-to-equity ratio has varied from 0.53 to 0.80, highlighting the company's reliance on debt financing compared to equity.

Furthermore, the financial leverage ratio has ranged from 2.45 to 2.82, indicating the company's level of financial risk and leverage. Overall, the trend in these solvency ratios suggests that National Vision Holdings Inc has been actively managing its debt levels and capital structure over time. However, the increasing trend in some ratios, particularly the debt-to-equity ratio, warrants further monitoring to ensure sustainable financial health and stability.

Coverage ratios

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 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Interest coverage -7.69 -6.97 7.29 8.73 26.16 31.43 43.03 54.06 20.65 10.34 6.66 2.63 1.70 0.80 -0.12 1.54 1.87 1.21 0.87 0.97

The interest coverage ratio measures a company's ability to pay its interest obligations on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest payments.

Based on the data provided for National Vision Holdings Inc, the interest coverage ratio has shown significant fluctuations over the past few quarters. The company experienced a substantial decline in interest coverage in the most recent quarter ending Dec 31, 2023, with a negative ratio of -7.69, indicating that the company's earnings were insufficient to cover its interest expenses.

Looking at the trend over the past few quarters, the interest coverage ratio was relatively strong in the quarters ending Dec 31, 2020, to Jun 30, 2022, with ratios ranging from 20.65 to 43.03, suggesting a healthy ability to cover interest payments. However, there was a noticeable deterioration in the ratio in subsequent quarters, particularly in the quarters ending Sep 30, 2022, to Dec 31, 2023, where the interest coverage dropped significantly into negative territory.

Overall, National Vision Holdings Inc's interest coverage ratio has been volatile, with periods of strong coverage followed by substantial declines. This trend indicates potential challenges in meeting interest obligations, and stakeholders may need to closely monitor the company's financial performance and debt management strategies.