Floor & Decor Holdings Inc (FND)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.33 | 2.41 | 2.63 | 2.82 | 2.89 |
Floor & Decor Holdings Inc has consistently shown strong solvency ratios over the past five years. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00, indicating that the company has no significant debt relative to its assets, capital, or equity. This suggests that Floor & Decor has a strong financial position with minimal financial risk related to debt obligations.
The financial leverage ratio has shown a decreasing trend from 2.89 in 2020 to 2.33 in 2024. This decrease indicates that the company has been relying less on debt financing over the years to fund its operations and investments. A lower financial leverage ratio typically signifies a lower level of financial risk and a stronger ability to withstand economic downturns.
Overall, the solvency ratios of Floor & Decor Holdings Inc suggest that the company is in a healthy financial position with a low level of debt relative to its assets and equity. This bodes well for the company's long-term financial stability and ability to navigate challenging economic conditions.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | 32.48 | 35.62 | 68.84 | 25.58 |
Floor & Decor Holdings Inc's interest coverage ratio has demonstrated a strong upward trend over the years, reflecting the company's improved ability to meet its interest obligations through its operating income.
The interest coverage ratio stood at 25.58 as of December 31, 2020, indicating that the company generated operating income 25.58 times greater than its interest expenses for that period. This suggests a healthy buffer to cover interest payments.
By December 31, 2021, the interest coverage ratio significantly improved to 68.84, showcasing a substantial increase in the company's ability to cover its interest expenses with operating income. This substantial rise indicates a positive financial performance and enhanced operational efficiency.
However, on December 31, 2022, the interest coverage ratio decreased to 35.62, though it still remained at a relatively strong level. This decline may be a result of various factors such as changes in operating income or increased interest expenses.
Subsequently, by December 31, 2023, the interest coverage ratio further decreased to 32.48, which could signal a slight decrease in the company's ability to cover its interest expenses compared to the previous year. This may warrant further monitoring to understand the factors influencing this reduction.
Lastly, the data shows a value of 0.00 for December 31, 2024. It is essential to note that an interest coverage ratio of 0.00 implies that the company's operating income is insufficient to cover its interest expenses, raising concerns about its financial health and ability to honor its debt obligations.
In summary, while Floor & Decor Holdings Inc exhibited a significant improvement in its interest coverage ratio from 2020 to 2021, there was a subsequent decline in the following years. It is crucial for stakeholders to monitor these fluctuations closely to assess the company's financial strength and ability to service its debt in the long term.