Fox Factory Holding Corp (FOXF)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.17 | 0.00 | 0.24 | 0.29 | 0.00 |
| Debt-to-capital ratio | 0.23 | 0.00 | 0.29 | 0.34 | 0.00 |
| Debt-to-equity ratio | 0.31 | 0.00 | 0.40 | 0.52 | 0.00 |
| Financial leverage ratio | 1.84 | 1.44 | 1.70 | 1.79 | 1.44 |
Fox Factory Holding Corp has shown a consistent improvement in its solvency ratios over the past five years. The debt-to-assets ratio has decreased from 0.29 in 2020 to 0.17 in 2023, indicating that the company has effectively reduced its reliance on debt to finance its assets. Similarly, the debt-to-capital ratio and debt-to-equity ratio have displayed a declining trend, reflecting a healthier capital structure with less debt relative to equity and total capital.
The financial leverage ratio, which measures the company's use of debt to support its operations and growth, has also improved from 1.79 in 2020 to 1.84 in 2023. This suggests that Fox Factory Holding Corp has become more efficient in managing its financial obligations and has reduced its overall financial risk.
Overall, the declining trend in solvency ratios indicates that Fox Factory Holding Corp has strengthened its financial position and is in a better position to weather economic downturns or unexpected challenges in the future.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 8.18 | 27.15 | 24.08 | 12.13 | 34.76 |
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.
Fox Factory Holding Corp's interest coverage ratio has fluctuated over the past five years. In 2023, the interest coverage ratio was 8.18, which suggests the company's operating income was sufficient to cover its interest expenses, albeit at a lower level compared to previous years. This may indicate a slight decrease in the company's ability to handle its interest obligations.
In comparison, in 2022, the interest coverage ratio was significantly higher at 27.15, indicating a robust ability to cover interest expenses. The ratio was also strong in 2021 at 24.08 and in 2019 at 34.76, suggesting that the company had a comfortable margin to cover its interest payments.
However, in 2020, the interest coverage ratio dropped to 12.13, which although lower than the 2019 ratio, still indicated a reasonable ability to meet interest obligations.
Overall, the trend in Fox Factory Holding Corp's interest coverage ratio shows some fluctuations but generally indicates that the company has maintained a satisfactory ability to cover its interest expenses over the past five years.