Fox Factory Holding Corp (FOXF)
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 | 1.86 | 1.84 | 1.44 | 1.70 | 1.79 |
Fox Factory Holding Corp has consistently shown very low solvency risk based on its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been reported as 0.00% for the years 2020 to 2024, indicating that the company has no significant long-term debt in relation to its total assets, capital, or equity.
Additionally, the Financial leverage ratio has remained relatively stable over the years, ranging from 1.44 to 1.86. A Financial leverage ratio below 2 generally indicates a conservative level of financial leverage.
Overall, the solvency ratios suggest that Fox Factory Holding Corp has a strong financial position with minimal reliance on debt to support its operations and growth, which is a positive indicator of the company's financial health and stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.02 | 8.18 | 27.15 | 18.60 | 12.25 |
The interest coverage ratio reflects Fox Factory Holding Corp's ability to meet its interest obligations with its earnings before interest and taxes.
Looking at the trend over the years, we see that Fox Factory Holding Corp's interest coverage ratio has fluctuated. In 2020, the ratio was 12.25, indicating that the company generated earnings 12.25 times larger than its interest expense. The ratio improved in 2021 to 18.60 and continued to increase significantly in 2022 to 27.15, suggesting a stronger ability to cover interest payments.
However, there was a noticeable decline in the interest coverage ratio in 2023 to 8.18, which might raise concerns about the company's ability to cover its interest expenses comfortably. The ratio dropped significantly in 2024 to 1.02, indicating a potential strain on Fox Factory Holding Corp's ability to meet its interest obligations with its current level of earnings.
Overall, while the company's interest coverage ratio has shown variability, it is important for stakeholders to closely monitor the trend to ensure Fox Factory Holding Corp maintains a healthy financial position to meet its interest payments in the future.