H&R Block Inc (HRB)
Solvency ratios
| Jun 30, 2024 | Mar 31, 2024 | 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 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.46 | 0.46 | 0.82 | 0.59 | 0.48 | 0.47 | 0.80 | 0.58 | 0.45 | 0.39 | 0.57 | 0.59 | 0.41 | 0.75 | 0.61 | 0.70 | 0.56 | 0.54 | 0.36 | 0.48 |
| Debt-to-capital ratio | 0.94 | 1.10 | 1.51 | 1.30 | 0.98 | 1.03 | 1.45 | 1.22 | 0.88 | 0.97 | 1.27 | 0.99 | 0.81 | 1.29 | 1.22 | 0.96 | 0.98 | 1.20 | 1.08 | 0.84 |
| Debt-to-equity ratio | 16.46 | — | — | — | 46.44 | — | — | — | 7.03 | 33.14 | — | 127.80 | 4.23 | — | — | 25.84 | 40.06 | — | — | 5.14 |
| Financial leverage ratio | 35.53 | — | — | — | 95.82 | — | — | — | 15.45 | 84.29 | — | 216.90 | 10.37 | — | — | 36.94 | 71.96 | — | — | 10.69 |
H&R Block Inc's solvency ratios show fluctuations over the time period analyzed. The debt-to-assets ratio remained relatively stable around 0.46 to 0.82, indicating that the company's assets were financed by debt in the range of 46% to 82%. The debt-to-capital ratio fluctuated between 0.88 and 1.51, reflecting shifts in the proportion of debt and equity in the company's capital structure.
The debt-to-equity ratio showed significant variability, ranging from 4.23 to 127.80, suggesting that at times the company relied heavily on debt to finance its operations compared to shareholder equity. The financial leverage ratio also exhibited fluctuations between 10.37 and 216.90, indicating the extent to which the company's operations were supported by debt.
Overall, the solvency ratios for H&R Block Inc indicate varying levels of leverage and financial risk over the period analyzed, with the company showing some fluctuations in its capital structure and debt financing. Further analysis and consideration of the company's overall financial health and strategy would be necessary to fully assess the impact of these solvency ratios.
Coverage ratios
| Jun 30, 2024 | Mar 31, 2024 | 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 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 10.61 | 10.90 | -0.02 | -0.29 | -0.42 | -1.45 | 9.14 | 8.74 | 8.39 | 16.61 | 4.11 | 4.50 | 7.20 | 3.11 | 3.95 | 3.95 | 0.82 | 6.21 | 6.57 | 6.91 |
The interest coverage ratio measures a company's ability to meet interest obligations on its outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses with operating income.
Based on the data provided for H&R Block Inc, the interest coverage ratio has fluctuated over the periods presented. In some quarters, the company had negative interest coverage, indicating that its operating income was insufficient to cover interest expenses. This could be a cause for concern as it may suggest financial distress and an inability to meet debt obligations.
However, in most periods, H&R Block Inc had positive interest coverage ratios, with some quarters showing notably high ratios. This implies that the company's operating income was comfortably covering its interest expenses during those times.
Overall, investors and creditors should monitor H&R Block Inc's trend in interest coverage ratio over time to assess the company's financial health and ability to service its debt. It is essential for the company to maintain a consistently healthy interest coverage ratio to demonstrate its financial stability and ability to meet its debt obligations.