Hawkins Inc (HWKN)
Solvency ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.13 | 0.17 | 0.20 | 0.19 | 0.13 |
| Debt-to-capital ratio | 0.18 | 0.23 | 0.28 | 0.25 | 0.18 |
| Debt-to-equity ratio | 0.22 | 0.29 | 0.38 | 0.33 | 0.21 |
| Financial leverage ratio | 1.62 | 1.69 | 1.87 | 1.78 | 1.67 |
Hawkins Inc's solvency ratios indicate the company's ability to meet its long-term debt obligations and financial leverage over the past five years.
The Debt-to-assets ratio has shown a declining trend, decreasing from 0.20 in 2022 to 0.13 in 2024. This suggests that the company has been able to reduce its reliance on debt to finance its assets, which is a positive sign for solvency.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also shown improvements over the years, indicating a decreasing reliance on debt as a source of capital. The Debt-to-capital ratio decreased from 0.28 in 2022 to 0.18 in 2024, while the Debt-to-equity ratio decreased from 0.38 in 2022 to 0.22 in 2024. These reductions indicate a stronger financial position and lower financial risk for the company.
The Financial leverage ratio, which indicates the proportion of the company's assets that are financed through debt, has also shown a downward trend from 1.87 in 2022 to 1.62 in 2024. A lower financial leverage ratio suggests that the company is relying less on debt to support its operations, which can be viewed positively from a solvency perspective.
Overall, the decreasing trend in the solvency ratios for Hawkins Inc indicates an improved ability to meet its long-term debt obligations and suggests a stronger financial position compared to previous years.
Coverage ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | 16.84 | 50.71 | 38.09 | 448.08 |
Hawkins Inc's interest coverage ratio has witnessed fluctuations over the past five years. In 2020, the ratio reached a substantial level of 448.08, indicating a strong ability to cover interest payments from its earnings. However, there was a notable decrease in 2021 to 38.09, albeit still demonstrating a healthy coverage ratio.
The company's interest coverage ratio improved significantly in 2022 to 50.71, reflecting a more robust position in meeting its interest obligations. In the following year, the ratio continued to increase to 16.84, albeit at a lower rate, showcasing a continued ability to cover interest expenses comfortably.
The absence of specific interest coverage data for the most recent year requires further monitoring to assess any potential impact on the company's ability to cover interest payments, manage debt levels, and maintain financial stability.