Guess? Inc. (GES)
Solvency ratios
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.10 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.28 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.39 |
| Financial leverage ratio | 3.78 | 4.54 | 4.10 | 4.54 | 3.80 |
Guess? Inc.'s solvency ratios indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity over the past five years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been at 0.00, reflecting that the company has no debt compared to its total assets, capital, and equity. This suggests that Guess? Inc. relies more on equity financing rather than debt for its operations and expansion.
Additionally, the financial leverage ratio, which measures the company's ability to meet its debt obligations, has remained relatively stable around 3.80 to 4.54 over the same period. This indicates that Guess? Inc. has a moderate level of financial leverage, with a majority of its capital being sourced from equity rather than debt.
Overall, based on these solvency ratios, Guess? Inc. appears to have a healthy financial structure with minimal debt levels, indicating a lower risk of financial distress and a strong ability to meet its financial obligations.
Coverage ratios
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 11.25 | 15.11 | 11.65 | -2.83 | 8.35 |
Guess? Inc.'s interest coverage ratio has shown varying levels over the past five years. In the most recent fiscal year, ending on February 3, 2024, the interest coverage ratio improved to 11.25 compared to the previous year of 15.11. This indicates that Guess? Inc. generated operating income 11.25 times more than the interest expenses it incurred for the year, reflecting strong ability to cover its interest obligations.
Looking further back, the interest coverage ratio was relatively steady in the fiscal years ending January 29, 2022, and February 1, 2020, at 11.65 and 8.35, respectively. These ratios suggest a consistent ability to meet interest payments comfortably.
However, in the fiscal year ending January 30, 2021, the interest coverage ratio dropped significantly to -2.83. A negative interest coverage ratio indicates that the company's operating income was insufficient to cover its interest expenses for that period, which can be a red flag for financial distress.
Overall, the recent improvement in the interest coverage ratio for Guess? Inc. is a positive sign of its ability to meet its interest obligations, but attention should be paid to any potential trends or one-time anomalies that may impact future ratios.