Helen of Troy Ltd (HELE)

Solvency ratios

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 Feb 29, 2020 Nov 30, 2019 Aug 31, 2019 May 31, 2019
Debt-to-assets ratio 0.23 0.25 0.29 0.29 0.32 0.34 0.36 0.35 0.29 0.18 0.20 0.22 0.15 0.19 0.14 0.16 0.18 0.14 0.17 0.19
Debt-to-capital ratio 0.29 0.31 0.36 0.35 0.38 0.42 0.45 0.45 0.38 0.25 0.27 0.30 0.22 0.27 0.19 0.21 0.23 0.17 0.22 0.24
Debt-to-equity ratio 0.40 0.46 0.56 0.55 0.62 0.73 0.82 0.80 0.61 0.33 0.37 0.42 0.28 0.36 0.23 0.26 0.29 0.21 0.28 0.31
Financial leverage ratio 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 1.64 1.54 1.63 1.64

Helen of Troy Ltd's solvency ratios have shown some fluctuations over the past several reporting periods. The company's debt-to-assets ratio has ranged from 0.14 to 0.36, indicating that its level of debt relative to its total assets has varied. The trend shows a decrease in this ratio from 0.36 to 0.23, which may suggest improved asset management or reduced debt levels.

The debt-to-capital ratio has also fluctuated within a range of 0.19 to 0.45, reflecting changes in the proportion of debt in the company's capital structure. The trend in this ratio indicates a decrease from 0.45 to 0.29, which may imply a decrease in the company's reliance on debt financing compared to its total capital.

Similarly, the debt-to-equity ratio has shown variability, ranging from 0.21 to 0.82. This ratio has trended downwards from 0.82 to 0.40, suggesting a decrease in the company's debt relative to its equity over the periods analyzed.

The financial leverage ratio, which measures the company's financial risk, has fluctuated between 1.54 and 2.32. The trend in this ratio shows a slight decrease from 2.32 to 1.73, indicating a potential decrease in financial risk or leverage.

Overall, the solvency ratios of Helen of Troy Ltd indicate fluctuations in its debt levels and capital structure over the periods analyzed, with a general trend towards reduced reliance on debt financing and improved financial leverage.

Coverage ratios

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 Feb 29, 2020 Nov 30, 2019 Aug 31, 2019 May 31, 2019
Interest coverage 4.94 4.55 3.98 4.34 5.20 6.95 11.04 17.01 21.24 19.67 20.99 24.63 22.35 19.62 18.19 14.24 14.06 17.87 15.80 16.07

Interest coverage ratio is a financial metric that indicates a company's ability to pay interest expenses on its outstanding debt. A higher interest coverage ratio is usually preferred as it suggests the company is generating enough earnings to cover its interest obligations comfortably.

Analyzing Helen of Troy Ltd's interest coverage ratio over the past 20 periods, we observe fluctuations in the ratio. The interest coverage ratio ranges from 3.98 to 24.63, indicating some volatility in the company's ability to cover its interest payments.

In general, the trend shows that Helen of Troy Ltd has maintained a relatively healthy interest coverage ratio over the periods, with most values above 4. This suggests that the company has generally been able to comfortably meet its interest payment obligations using its operating income.

The high ratios observed in some periods, such as 11.04 to 24.63, indicate strong earnings relative to interest expenses during those specific periods. On the other hand, the lower ratios, such as 3.98 to 5.20, suggest that the company's earnings may have been relatively lower compared to its interest expenses during those times.

Overall, monitoring the interest coverage ratio is crucial for assessing a company's financial health and ability to service its debt. Further analysis and comparison with industry benchmarks would provide more insights into Helen of Troy Ltd's financial performance and debt management strategies.