John B Sanfilippo & Son Inc (JBSS)

The analysis of John B Sanfilippo & Son Inc.'s solvency ratios based on the provided data indicates a predominantly conservative debt profile over the observed period, with noteworthy variations in certain metrics.

The Debt-to-Assets Ratio consistently reflects a very low or negligible level of leverage throughout the period, with values remaining at or near zero. This suggests that the company predominantly finances its assets through equity rather than debt, thereby indicating a strong solvency position and a minimal reliance on external borrowings.

Similarly, the Debt-to-Capital Ratio exhibits a low and stable trend, with occasional minor increases observed around September 2021 (0.06) and December 2021 (0.06). These brief upticks suggest minor adjustments in the capital structure, but overall, the ratio remains close to zero, reinforcing the company's limited dependence on debt capital.

The Debt-to-Equity Ratio presents a very low or zero level across the period, with isolated instances such as September and December 2021 observing ratios of 0.07 and 0.06 respectively. These figures underscore the minimal leverage and a predominantly equity-funded balance sheet, which enhances the company's financial stability and capacity to absorb losses.

The Financial Leverage Ratio fluctuates within a range from approximately 1.46 to 1.78, indicating that the company's equity constitutes a substantial proportion of its total capital structure. The changes over time suggest slight adjustments in leverage, but the ratio remains relatively stable and below levels that might typically indicate high financial risk.

In aggregate, the data indicates that John B Sanfilippo & Son Inc. maintains an exceptionally low level of indebtedness, with key ratios such as debt-to-assets, debt-to-capital, and debt-to-equity remaining at or near zero throughout the period. The financial leverage ratio further corroborates a conservative capital structure, implying strong solvency and financial stability with limited reliance on debt instruments. This positioning provides a buffer against financial distress and contributes to the company's robust financial health profile.

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Coverage ratios

The interest coverage ratios of John B Sanfilippo & Son Inc. over the analyzed period exhibit a generally strong capacity to cover interest expenses, with ratios consistently above 17.48 and reaching as high as 67.64. The earliest data point from March 31, 2021, indicates a very high interest coverage ratio of 49.33, suggesting the company had a substantial margin to meet interest obligations at that time. This trend peaks in September 2021 at 67.64, reflecting robust earnings relative to interest expenses.

Throughout 2022, the ratios show a declining trend from 43.09 in March to 35.49 in December, indicating a gradual decrease in the company's ability to cover interest payments but remaining comfortably above critical thresholds. In 2023, ratios stabilize somewhat, fluctuating between 37.12 and 52.01, with a notable rise again towards the end of September 2023.

Looking into 2024 and mid-2025, the ratios demonstrate continued variability, with the lowest observed value of 17.48 in June 2025. Despite this decline, the interest coverage remains positive and above levels typically considered concerning. The overall trend suggests a normalization or slight weakening in the company's ability to service interest expenses, but the ratios still reflect a generally healthy position.

In summary, the company's interest coverage ratios over the period reveal a consistently strong ability to meet interest obligations, with fluctuations that may be attributed to variations in earnings. The ratios remain well above critical levels—indicating manageable debt levels and a solid financial cushion for covering interest expenses across the analyzed timeframe.