Floor & Decor Holdings Inc (FND)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.04 | 0.09 | 0.05 | 0.07 | 0.06 |
| Debt-to-capital ratio | 0.09 | 0.20 | 0.13 | 0.17 | 0.16 |
| Debt-to-equity ratio | 0.10 | 0.24 | 0.15 | 0.21 | 0.19 |
| Financial leverage ratio | 2.41 | 2.63 | 2.82 | 2.89 | 3.04 |
Floor & Decor Holdings Inc's solvency ratios have exhibited favorable trends over the past five years, indicating a strong financial position in terms of debt management and capital structure.
The Debt-to-assets ratio has shown a consistent decline from 0.09 in 2019 to 0.04 in 2023, suggesting that the company has been able to reduce its reliance on debt to finance its assets. This indicates a lower financial risk and a healthier balance sheet.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also improved over the years, decreasing from 0.20 to 0.09 and 0.24 to 0.10 respectively. These reductions suggest that Floor & Decor Holdings Inc has been successful in optimizing its capital structure by decreasing its debt levels relative to its capital and equity, which enhances the company's solvency and financial stability.
The Financial leverage ratio has also shown a decreasing trend from 3.04 in 2019 to 2.41 in 2023. This indicates that the company has been able to reduce its financial leverage over this period, implying a lower level of financial risk and better capacity to meet its financial obligations.
Overall, Floor & Decor Holdings Inc's solvency ratios demonstrate a prudent approach to managing debt and capital structure, which bodes well for the company's long-term financial health and stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 32.48 | 35.62 | 68.84 | 25.70 | 18.09 |
Floor & Decor Holdings Inc has exhibited a consistently strong interest coverage ratio over the past five years, indicating its ability to comfortably meet its interest payment obligations. The interest coverage ratio has shown an increasing trend from 2019 to 2021, at 18.09, 25.70, and 68.84, respectively. This sharp improvement suggests that the company's earnings before interest and taxes (EBIT) have been more than sufficient to cover its interest expenses during these years. Additionally, in 2022 and 2023, the interest coverage remained robust at 35.62 and 32.48, indicating the company's continued ability to service its debt obligations comfortably. Overall, the consistent high interest coverage ratio reflects Floor & Decor's financial stability and capacity to handle its interest payments efficiently.