John B Sanfilippo & Son Inc (JBSS)

The solvency ratios for John B Sanfilippo & Son Inc. over the period from June 2021 to June 2025 indicate a consistent pattern of no long-term debt obligations. The debt-to-assets ratio remains at zero across all years, suggesting the company does not utilize debt financing relative to its asset base. Similarly, the debt-to-capital ratio and debt-to-equity ratio are also reported as zero throughout this timeframe, reinforcing the observation that the company maintains a debt-free or debt-minimized capital structure during these years.

In contrast, the financial leverage ratio exhibits some variation over the same period, ranging from a low of 1.46 in June 2023 to a high of 1.66 in June 2025. A leverage ratio above 1 generally indicates that the company is financed primarily through equity, with the ratio reflecting the degree of financial leverage used. The moderate increases and decreases over the years suggest a stable leverage position, with slight fluctuations that do not significantly alter the overall low-leverage profile.

Overall, the data reflects a company that appears to operate with little to no leverage, relying predominantly on equity for its capital structure. This conservative approach to financial leverage enhances its solvency profile, reducing the risk associated with debt obligations and financial distress.

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Coverage ratios

The interest coverage ratio for John B Sanfilippo & Son Inc. has been tracked over a four-year period, reflecting the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). On June 30, 2021, the ratio stood at 56.39, indicating a strong capacity to cover interest expenses multiple times over. By June 30, 2022, the ratio decreased to 42.31, suggesting a modest reduction in coverage but still representing a robust financial cushion. The decline continued into June 30, 2023, with the ratio decreasing further to 40.53, which, while indicative of some pressure on interest coverage, remains well above levels that would typically raise concern.

The trend shows a further decline by June 30, 2024, with the ratio reaching 32.36, signaling a consistent downward trajectory in the company's ability to cover interest expenses, though it still maintains sufficient coverage. Notably, by June 30, 2025, the ratio drops to zero, implying a significant deterioration in the company's earnings relative to its interest obligations, potentially indicating that EBIT has fallen to a level where it no longer adequately covers interest expenses or that interest expenses have been eliminated from the financial structure.

Overall, the data demonstrates a gradual decline in interest coverage over the four-year span, culminating in a situation that warrants close monitoring, as the near-zero coverage in 2025 could pose affordability issues of debt service and increase financial risk if such trends persist or worsen.