Foot Locker Inc (FL)

The solvency ratios of Foot Locker Inc indicate the company's ability to meet its long-term financial obligations.

The debt-to-assets ratio has been relatively stable over the past five years, ranging from 0.01 to 0.06. This ratio indicates that a small percentage of Foot Locker's assets are funded by debt, suggesting a lower financial risk.

The debt-to-capital ratio has also remained consistent, hovering between 0.03 and 0.12. This ratio signifies the proportion of the company's capital structure that is financed by debt, with higher values indicating higher leverage. Foot Locker's ratio suggests a moderate level of leverage.

The debt-to-equity ratio shows a similar trend to the debt-to-capital ratio, with values ranging from 0.04 to 0.14. This ratio reveals the extent to which a company's operations are funded by debt compared to equity. Foot Locker's ratio indicates a reasonable balance between debt and equity financing.

The financial leverage ratio has decreased slightly over the past five years, from 2.66 to 2.38. This ratio assesses the company's reliance on debt to finance its operations and indicates how much of the company's assets are financed by debt. A lower ratio suggests a lower risk of financial distress.

Overall, based on these solvency ratios, Foot Locker Inc appears to have a stable financial position with a conservative approach to debt financing, which may reduce financial risk and enhance long-term sustainability.

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Coverage ratios

The interest coverage ratio for Foot Locker Inc has shown fluctuations over the past five years. It decreased from 81.12 in February 2020 to 7.47 in February 2024. This downward trend indicates a decrease in the company's ability to cover its interest expenses with its operating income. While the ratio was relatively high in January 2022 at 66.92 and January 2020 at 29.05, it has significantly dropped in recent years. A declining interest coverage ratio may raise concerns about the company's financial health and its ability to meet its debt obligations. It would be advisable to further investigate the reasons behind this trend and monitor the company's financial performance closely.