Hawkins Inc (HWKN)

Hawkins Inc has consistently maintained a strong solvency position as evidenced by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which have been recorded at 0.00 across the years from March 31, 2021, to March 31, 2025. This indicates that the company's level of debt in relation to its assets, capital, and equity is negligible, highlighting a conservative approach to debt financing.

Moreover, the financial leverage ratio, which measures the extent to which a company is utilizing debt financing, has shown slight fluctuations over the years, with values ranging from 1.62 to 1.87. Despite these fluctuations, the ratios remain relatively low, further supporting Hawkins Inc's prudent financial management practices and minimal reliance on debt to fund its operations.

Overall, the solvency ratios suggest that Hawkins Inc has a solid financial foundation with minimal financial risk stemming from its debt obligations. This stability is indicative of a well-managed capital structure that aligns with conservative financial principles.

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Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. Looking at the data for Hawkins Inc from March 31, 2021, to March 31, 2025, we can observe a fluctuating trend in the interest coverage ratio.

As of March 31, 2021, the interest coverage ratio was 39.07, indicating that the company generated ample earnings to cover its interest expenses. Subsequently, by March 31, 2022, the ratio improved further to 50.84, signaling a stronger ability to cover interest obligations.

However, the interest coverage ratio saw a notable decline by March 31, 2023, dropping to 16.78. This decrease suggests a potential strain on the company's ability to cover interest payments with its earnings. The ratio somewhat recovered by March 31, 2024, reaching 24.62 but still remaining below the levels observed in the earlier years.

Notably, by March 31, 2025, the interest coverage ratio was 0.00, indicating that the company's earnings were insufficient to cover its interest expenses during that period. This could raise concerns about the company's financial stability and ability to meet its debt obligations using its current earnings.

In summary, the fluctuating trend in Hawkins Inc's interest coverage ratio over the years reflects varying levels of financial health and the company's ability to service its debt. Further analysis and monitoring of this ratio will be crucial to assess the company's financial risk and performance in the future.