H&R Block Inc (HRB)
Solvency ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.46 | 0.48 | 0.45 | 0.41 | 0.56 |
| Debt-to-capital ratio | 0.94 | 0.98 | 0.88 | 0.81 | 0.98 |
| Debt-to-equity ratio | 16.46 | 46.44 | 7.03 | 4.23 | 40.06 |
| Financial leverage ratio | 35.53 | 95.82 | 15.45 | 10.37 | 71.96 |
H&R Block Inc's solvency ratios indicate its ability to meet its long-term debt obligations and sustain its operations. The debt-to-assets ratio has shown a fluctuating trend over the years, ranging from 0.41 in April 2021 to 0.56 in April 2020. This ratio suggests that H&R Block has been effective in managing its debt relative to its total assets.
The debt-to-capital ratio has also displayed variability, with values ranging from 0.81 in April 2021 to 0.98 in June 2023 and April 2020. This ratio indicates the proportion of the company's capital that is financed through debt, with higher values suggesting higher financial risk.
The debt-to-equity ratio has seen significant fluctuations, with a peak at 46.44 in June 2023 and a low of 4.23 in April 2021. A decreasing trend in this ratio indicates a stronger financial position as the company relies less on debt financing and more on equity.
The financial leverage ratio, which reflects the company's reliance on debt financing, has also shown variability. The ratio ranged from 10.37 in April 2021 to 95.82 in June 2023. A decreasing trend in this ratio suggests a more conservative approach to debt utilization.
Overall, while H&R Block's solvency ratios have displayed fluctuations, the company has shown some improvement in managing its debt and maintaining a favorable balance between debt and equity financing in recent years.
Coverage ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 10.61 | 10.63 | 8.39 | 7.20 | 0.82 |
The interest coverage ratio for H&R Block Inc has shown a consistent improvement over the past five years. The ratio has increased from 0.82 in April 2020 to 10.61 in June 2024, indicating the company's ability to comfortably cover its interest expenses with its earnings before interest and taxes (EBIT). This steady improvement suggests a strengthening financial position and a lower risk of financial distress due to inadequate coverage of interest expenses. The trend indicates that the company is managing its debt obligations more efficiently and generating sufficient income to service its interest payments. Overall, the increasing interest coverage ratio reflects positively on the financial health and stability of H&R Block Inc.