Five Below Inc (FIVE)

Five Below Inc has consistently maintained a very low level of debt compared to its assets, capital, and equity over the past five years, as indicated by the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all being recorded as 0.00 for each year. This suggests that the company relies primarily on equity financing to fund its operations rather than taking on debt.

The financial leverage ratio, which measures the proportion of a company's assets that are financed by debt, shows a slight fluctuation over the years. While the ratio has varied slightly, it remained relatively stable, indicating that Five Below Inc has maintained a conservative approach to leveraging debt to finance its assets. The decreasing trend in the more recent years could suggest a decrease in reliance on debt to fund operations or investments.

Overall, the solvency ratios reflect Five Below Inc's strong financial position and its ability to meet its financial obligations without having to heavily rely on debt financing. This indicates a lower risk of default for the company and a solid financial foundation to support its growth and future operations.

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Coverage ratios

The interest coverage ratio of Five Below Inc has shown fluctuations over the past five fiscal years.

For the most recent fiscal year ending February 3, 2024, the interest coverage ratio was not disclosed in the table provided. In the preceding fiscal year ending January 28, 2023, the interest coverage ratio was quite high at 138.52, indicating that the company's earnings before interest and taxes (EBIT) were sufficient to cover its interest expenses. This high ratio suggests the company had a strong ability to meet its interest obligations from its operating profits.

In the fiscal year ending January 29, 2022, the interest coverage ratio decreased to 28.83, highlighting a significant drop compared to the previous year. Despite this decline, the ratio still indicates that the company generated enough EBIT to cover its interest payments, albeit at a lower level than in the prior year.

In the fiscal year ending January 30, 2021, the interest coverage ratio improved to 89.17, showing a rebound from the lower ratio in the previous year. This increase suggests that the company's ability to cover its interest expenses strengthened compared to the prior year.

In the fiscal year ending February 1, 2020, the interest coverage ratio was 50.71, indicating that the company's EBIT was adequate to cover its interest charges, but at a slightly lower level than in the more recent fiscal years.

Overall, the trend in the interest coverage ratio of Five Below Inc indicates some variability but generally demonstrates the company's ability to meet its interest obligations using its operating profits, with the ratio fluctuating over the years.