Helen of Troy Ltd (HELE)
Solvency ratios
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 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 | 1.83 | 1.84 | 1.82 | 1.73 | 1.86 | 1.93 | 1.90 | 1.96 | 2.15 | 2.31 | 2.32 | 2.13 | 1.84 | 1.89 | 1.95 | 1.83 | 1.91 | 1.66 | 1.62 |
Helen of Troy Ltd has consistently maintained a strong solvency position over the analyzed period, as indicated by the low and stable debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which have consistently remained at 0.00. This suggests that the company has a minimal level of debt in relation to its total assets, capital, and equity.
The financial leverage ratio, while showing some variability, has generally remained within a reasonable range over the years. The ratio increased from 1.62 on May 31, 2020, to 2.32 on May 31, 2022, before gradually decreasing to 1.86 by February 28, 2025. This indicates a rise in financial leverage, possibly due to increased borrowing or financing activities during the intermediate years, followed by a subsequent reduction in leverage.
Overall, Helen of Troy Ltd exhibits a stable and conservative solvency position, with limited reliance on debt financing in its capital structure. This prudent approach to managing debt levels helps the company maintain financial stability and resilience against potential economic challenges.
Coverage ratios
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.76 | 4.32 | 4.29 | 4.53 | 4.56 | 4.05 | 4.05 | 4.33 | 5.20 | 6.94 | 11.02 | 16.41 | 20.58 | 18.90 | 20.21 | 24.52 | 22.28 | 21.99 | 20.59 | 15.93 |
The interest coverage ratio of Helen of Troy Ltd provides insight into the company's ability to meet its interest obligations with its operating income. Looking at the historical trend over the years, we observe fluctuations in the interest coverage ratio.
From May 31, 2020, to August 31, 2021, Helen of Troy's interest coverage ratio consistently increased from 15.93 to 20.21, demonstrating improving capacity to cover interest expenses. However, the ratio started declining from August 31, 2021, reaching its lowest point at 4.05 on November 30, 2023. This significant drop indicates a potential strain on the company's ability to cover interest payments with operating income during that period.
As of February 28, 2025, the interest coverage ratio stands at 2.76, which is relatively low compared to the earlier years, suggesting a continued challenge in meeting interest obligations. A low interest coverage ratio may raise concerns among creditors and investors about the company's financial stability and ability to honor debt commitments.
In conclusion, the analysis of Helen of Troy Ltd's interest coverage ratio suggests both strengths and weaknesses in managing interest payments over the years. Monitoring this ratio is crucial for evaluating the company's financial health and its ability to meet debt obligations in the future.