Floor & Decor Holdings Inc (FND)

Solvency ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Debt-to-assets ratio 0.04 0.04 0.05 0.07 0.09 0.09 0.06 0.05 0.05 0.05 0.06 0.07 0.07 0.08 0.08 0.16 0.06 0.07 0.07 0.08
Debt-to-capital ratio 0.09 0.09 0.11 0.15 0.20 0.19 0.15 0.12 0.13 0.13 0.14 0.15 0.17 0.18 0.20 0.34 0.16 0.17 0.17 0.19
Debt-to-equity ratio 0.10 0.10 0.13 0.17 0.24 0.23 0.18 0.14 0.15 0.15 0.17 0.18 0.21 0.22 0.24 0.51 0.19 0.20 0.21 0.23
Financial leverage ratio 2.41 2.46 2.47 2.51 2.63 2.68 2.81 2.78 2.82 2.87 2.85 2.74 2.89 2.91 2.97 3.25 3.04 2.98 3.00 3.02

Floor & Decor Holdings Inc maintains a relatively conservative level of debt compared to its total assets, as indicated by its consistently low debt-to-assets ratio over the past few years. The company's debt-to-assets ratio typically ranged between 4% and 9%, suggesting that only a small portion of its assets are financed through debt.

However, when evaluating the company's leverage from a broader perspective, the debt-to-capital ratio and debt-to-equity ratio show slightly higher levels of debt, with the figures fluctuating between 9% and 34% for the debt-to-capital ratio and between 10% and 51% for the debt-to-equity ratio. These ratios indicate that a larger portion of Floor & Decor's capital structure is reliant on debt financing.

Furthermore, Floor & Decor's financial leverage ratio has been relatively stable, hovering around 2.4 to 3.0 over the past few years, indicating a moderate level of financial leverage. A higher financial leverage ratio implies a higher proportion of debt in the company's capital structure, potentially leading to increased financial risk.

In summary, Floor & Decor Holdings Inc maintains a prudent approach to managing its debt levels, as reflected in its low debt-to-assets ratio. However, the company's debt-to-capital and debt-to-equity ratios suggest that a significant portion of its capital structure is funded by debt. Investors and stakeholders should monitor these ratios carefully to assess the company's solvency and financial risk position.

Coverage ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Interest coverage 32.48 25.91 24.08 26.84 35.62 51.99 67.93 71.74 68.84 57.08 49.04 33.23 25.70 24.28 18.32 21.61 18.09 14.12 14.13 13.38

Floor & Decor Holdings Inc's interest coverage ratio has been fluctuating over the past few years. The interest coverage ratio is a measure of the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A higher ratio indicates that the company is more capable of meeting its interest payments.

From Dec 31, 2023, to Mar 31, 2022, the interest coverage ratio has been relatively high, ranging from 24.08 to 71.74. This indicates that the company had a comfortable margin to cover its interest expenses with its earnings during this period.

However, the interest coverage ratio saw a decline in the most recent quarter, Dec 31, 2021, to 13.38 in Mar 31, 2019. This decrease suggests that the company's ability to cover its interest expenses with its earnings has weakened during this period.

Overall, Floor & Decor Holdings Inc's interest coverage ratio has shown some inconsistencies over the past few years, with both high and low points. It is essential for the company to monitor this ratio closely to ensure it maintains a healthy level of coverage for its interest obligations.