Grocery Outlet Holding Corp (GO)
Solvency ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.10 | 0.00 | 0.00 | 0.00 | 0.14 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.22 |
| Debt-to-capital ratio | 0.19 | 0.00 | 0.00 | 0.00 | 0.25 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.40 |
| Debt-to-equity ratio | 0.24 | 0.00 | 0.00 | 0.00 | 0.34 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.65 |
| Financial leverage ratio | 2.44 | 2.43 | 2.42 | 2.46 | 2.50 | 2.53 | 2.55 | 2.64 | 2.65 | 2.63 | 2.63 | 2.64 | 2.70 | 2.69 | 2.79 | 2.96 | 2.93 | 2.92 |
Solvency ratios provide insight into a company's ability to meet its long-term financial obligations. Based on the data provided for Grocery Outlet Holding Corp, it is observed that the company has maintained low debt levels relative to its assets, capital, and equity over recent quarters.
The debt-to-assets ratio has generally been low, indicating that only a small portion of the company's assets is financed by debt. The debt-to-capital and debt-to-equity ratios also remain minimal, reflecting a conservative capital structure with a limited reliance on debt for funding operations.
The financial leverage ratio has shown some fluctuations but generally remains at a moderate level, indicating that the company has a reasonable amount of debt in relation to its equity. This suggests that Grocery Outlet Holding Corp has been managing its leverage effectively and has a stable financial position in terms of solvency.
Overall, the solvency ratios analysis suggests that Grocery Outlet Holding Corp has maintained a strong financial position with low debt levels and adequate capacity to meet its long-term obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.81 | 5.38 | 5.03 | 5.07 | 4.98 | 5.33 | 5.97 | 5.88 | 6.20 | 7.93 | 7.33 | 6.93 | 5.55 | 3.90 | 3.30 |
The interest coverage ratio for Grocery Outlet Holding Corp has shown a relatively stable trend over the past several quarters, ranging from a low of 3.30 in June 2020 to a high of 7.93 in September 2021. The ratio indicates the company's ability to meet its interest obligations from its operating income, with higher values suggesting a stronger ability to cover interest expenses.
In the most recent quarter, December 2023, the interest coverage ratio stands at 5.81, which indicates that the company generated operating income nearly 5.81 times its interest expenses during that period. This level of coverage is generally considered healthy, although it has slightly decreased from the previous quarter's level of 5.38.
Overall, the consistency of the interest coverage ratio around the 5 to 7 range demonstrates a good financial health in terms of meeting interest obligations, but it is important to monitor any trends that may impact the company's ability to cover its interest expenses in the future.