National Beverage Corp (FIZZ)

The solvency ratios of National Beverage Corp over the observed period reveal a consistent pattern characterized by minimal to zero leverage. The Debt-to-Assets ratio, Debt-to-Capital ratio, and Debt-to-Equity ratio are all recorded at 0.00%, indicating an absence of reported debt relative to the company's assets, capital, and equity. This suggests that the company operates entirely without long-term or short-term debt, reflecting a highly conservative leverage stance or possibly that debt is not a significant component of its capital structure during the periods analyzed.

Complementing these observations, the Financial Leverage Ratio, which measures the degree to which a company uses debt to finance its assets relative to equity, shows values fluctuating around approximately 1.38 to 1.72 across the reporting periods. Specifically, the ratio ranged from a low of about 1.38 in April 2024 to a high of 1.72 in July 2022. These ratios are relatively moderate, indicating a balanced leverage profile mainly composed of equity with limited debt influence. The gradual decline from earlier higher ratios to lower levels could suggest a cautiously reduced reliance on financial leverage over time, or simply reflect the absence of debt that leads to ratios being driven predominantly by equity.

In sum, National Beverage Corp demonstrates an almost entirely debt-free financial structure across multiple periods, with leverage ratios driven primarily by its equity base. The absence of debt is notably remarkable in the context of solvency analysis, as it points to a conservative or asset-backed financing strategy, reducing solvency risks associated with debt obligations. The moderate fluctuations in the financial leverage ratio further support the view that the company maintains a stable, low-risk leverage profile, which is favorable from a solvency standpoint.

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Coverage ratios

The interest coverage ratio for National Beverage Corp exhibits significant variation over the analyzed periods. Initially, the ratio was exceptionally high, with values such as approximately 718.43 in late July 2022 and 550.53 at the end of July 2022, indicating an extremely comfortable ability to meet interest obligations during this period.

Subsequently, a notable decline is observed: the ratio decreased to about 450.49 in late October 2022 and remained relatively stable around 549.42 at the end of October 2022. Moving into early 2023, the ratio experienced a substantial reduction, dropping to approximately 250.35 in late January and further decreasing to 160.84 by the end of January. During this period, the company's capacity to cover interest payments diminished markedly, suggesting increased leverage, costs, or a decline in earnings before interest and taxes (EBIT).

The declining trend continued into April 2023, with the ratio falling to about 103.96 and then further to 77.22 by the end of April. This indicates a narrowing margin of safety in terms of interest coverage, approaching levels where the company’s ability to comfortably meet interest obligations becomes more marginal.

In the third quarter of 2023, the ratio shows signs of recovery, reaching approximately 106.12 in late July and 154.21 at the end of October 2023. Although these figures are lower than initial peaks in 2022, they reflect an improved capacity relative to the previous quarter, possibly due to operational improvements or other earnings enhancements.

After October 2023, the dataset does not include subsequent interest coverage ratios, marked by placeholders indicating missing or unreported data through January 2024 and beyond. This absence precludes assessment of the company’s current interest coverage status beyond late 2023.

Overall, the trend indicates a substantial decline in the company's ability to cover interest expenses over the analyzed period, transitioning from an extremely high ratio in early 2022 to more moderate levels by late 2023. The fluctuations suggest periods of operational or financial stress and recovery episodes. The current data (up to October 2023) imply that the company’s interest coverage capacity remains below initial peak levels but has experienced some improvement in the latter part of 2023.