Guess? Inc. (GES)

The solvency ratios of Guess? Inc. indicate a strong financial position in terms of debt management and leverage. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have consistently remained at 0.00 over the years, suggesting that the company has no debt relative to its total assets, capital, and equity.

The Financial leverage ratio, on the other hand, has shown some variability. It decreased from 4.54 in January 2023 to 3.78 in January 2024, signaling a reduction in the company's reliance on debt to finance its operations. However, by January 2025, the ratio increased to 5.03, indicating a higher level of financial leverage compared to previous periods.

Overall, the solvency ratios reflect a prudent debt management strategy by Guess? Inc., with a generally low level of debt relative to its assets, capital, and equity. The increase in the Financial leverage ratio in January 2025 may suggest a shift in the company's financing approach, potentially warranting further investigation into its long-term financial health and risk management practices.

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Coverage ratios

Guess? Inc.'s interest coverage ratio, a key indicator of the company's ability to meet its interest obligations, fluctuated over the past few years. As of January 28, 2023, the interest coverage ratio stood at 15.11, indicating that Guess? Inc. generated more than enough operating income to cover its interest expenses. The ratio improved further by January 31, 2023, reaching 19.33, reflecting a healthier financial position.

However, by January 31, 2024, the interest coverage ratio dropped to 11.79, suggesting a slight decline in the company's ability to cover its interest payments with operating income. This trend continued into February 3, 2024, with a marginal decrease to 11.25, indicating a continued pressure on the company's ability to service its debt obligations.

The most concerning development occurred by January 31, 2025, when the interest coverage ratio plummeted to 1.68, signifying a significant deterioration in Guess? Inc.'s capacity to meet its interest expenses through operating income. This sharp decline raises flags about the company's financial health and its ability to sustainably service its debt obligations.

Overall, the downward trend in Guess? Inc.'s interest coverage ratio highlights a potential strain on the company's financial position and suggests a need for careful monitoring of its debt management strategies and operational performance going forward.