John B Sanfilippo & Son Inc (JBSS)

John B Sanfilippo & Son Inc has displayed a consistently strong solvency position over the past five years based on the solvency ratios analyzed. The debt-to-assets ratio has been consistently low, indicating that only a minimal portion of the company's assets is financed by debt. This suggests a low level of financial risk as the company's assets are primarily funded by equity.

Similarly, the debt-to-capital and debt-to-equity ratios have remained relatively stable and low over the years, indicating a conservative capital structure with a significant portion of the company's capital being derived from equity rather than debt. This conservative approach to financing reduces the company's financial risk and enhances its ability to withstand economic downturns or unexpected challenges.

The financial leverage ratio has slightly increased over the years but still remains at a moderate level. This ratio signifies the extent to which the company relies on debt to finance its assets. A lower financial leverage ratio implies lower financial risk and greater stability, which enhances the company's ability to generate sustainable returns for its shareholders.

Overall, the solvency ratios suggest that John B Sanfilippo & Son Inc maintains a solid financial position with a prudent approach to capital structure management, which bodes well for its long-term financial health and stability.

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Coverage ratios

The interest coverage ratio for John B Sanfilippo & Son Inc has shown a fluctuating trend over the past five years, ranging from 32.36 in 2024 to a high of 56.39 in 2021. The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher ratio indicates the company is more capable of covering its interest expenses.

While the company's interest coverage ratio has generally been healthy over the period, the decreasing trend observed in the last couple of years (from 56.39 in 2021 to 32.36 in 2024) warrants attention. A declining interest coverage ratio could indicate a potential strain on the company's ability to meet its interest payments from its operating income.

It is important for investors and stakeholders to closely monitor this ratio over time to ensure that the company's financial health remains intact and that it can continue to meet its debt obligations comfortably. Deterioration in the interest coverage ratio could potentially signal financial distress in the future.