Fox Factory Holding Corp (FOXF)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.86 | 1.91 | 1.89 | 1.89 | 1.84 | 1.35 | 1.49 | 1.57 | 1.44 | 1.59 | 1.71 | 1.75 | 1.70 | 1.78 | 1.81 | 1.78 | 1.79 | 1.84 | 1.87 | 2.49 |
The solvency ratios of Fox Factory Holding Corp indicate a strong financial position in terms of its ability to meet its financial obligations.
1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets financed by debt. Fox Factory has consistently maintained a debt-to-assets ratio of 0.00 across all reported periods. A ratio of 0.00 implies that the company has no debt in relation to its total assets, indicating a low financial risk and strong solvency.
2. Debt-to-capital ratio: This ratio assesses the percentage of a company's capital structure financed by debt. Similar to the debt-to-assets ratio, Fox Factory has consistently reported a debt-to-capital ratio of 0.00 throughout the analyzed periods. This suggests that the company relies very little or not at all on debt to fund its operations, further underscoring its solid financial position.
3. Debt-to-equity ratio: The debt-to-equity ratio shows the extent to which a company is financed by debt relative to its equity. Fox Factory has maintained a debt-to-equity ratio of 0.00 in all reported periods, indicating that the company's financial structure is predominantly equity-based, with minimal reliance on debt financing.
4. Financial leverage ratio: This ratio provides insight into the company's financial leverage and risk profile. Fox Factory's financial leverage ratio has shown a decreasing trend over the periods, starting at 2.49 and gradually declining to 1.86 by December 31, 2024. A decreasing trend in the financial leverage ratio implies that the company is becoming less reliant on debt to finance its operations, which can enhance its solvency and financial stability.
In summary, based on the solvency ratios analyzed, Fox Factory Holding Corp demonstrates a strong financial position with minimal debt and low financial risk. The consistent low ratios across all metrics indicate a prudent financial management strategy that prioritizes stability and sustainability.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.02 | -0.06 | 0.52 | 1.86 | 5.17 | 14.68 | 17.42 | 23.63 | 27.47 | 28.62 | 28.75 | 26.68 | 22.72 | 21.34 | 20.93 | 15.09 | 13.21 | 14.38 | 15.63 | 25.08 |
The interest coverage ratio of Fox Factory Holding Corp has shown a consistent trend of decline over the past few years. From a relatively strong position of 25.08 in March 2020, the ratio steadily decreased to a low of 0.52 in June 2024, indicating a significant deterioration in the company's ability to cover its interest expenses with operating income.
This decline in interest coverage may raise concerns about the company's financial health and ability to meet its debt obligations. A low interest coverage ratio suggests that Fox Factory Holding Corp may be at higher risk of defaulting on its debt payments, particularly as the ratio dropped into negative territory in September 2024.
Management should closely monitor and address this downward trend in interest coverage to ensure the company's financial stability and ability to service its debt in the future. Investors and stakeholders may view this weakening interest coverage as a potential red flag signaling financial distress that needs to be promptly addressed.