Korn Ferry (KFY)
Solvency ratios
| Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.11 | 0.11 | 0.12 | 0.12 | 0.11 | 0.12 | 0.12 | 0.12 | 0.11 | 0.12 | 0.13 | 0.13 | 0.13 | 0.14 | 0.15 | 0.15 | 0.14 | 0.14 | 0.11 | 0.09 |
| Debt-to-capital ratio | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.20 | 0.20 | 0.20 | 0.20 | 0.21 | 0.21 | 0.22 | 0.22 | 0.23 | 0.24 | 0.24 | 0.24 | 0.24 | 0.18 | 0.15 |
| Debt-to-equity ratio | 0.23 | 0.23 | 0.24 | 0.24 | 0.24 | 0.25 | 0.25 | 0.25 | 0.26 | 0.26 | 0.27 | 0.28 | 0.29 | 0.31 | 0.32 | 0.32 | 0.32 | 0.31 | 0.22 | 0.18 |
| Financial leverage ratio | 2.12 | 2.09 | 2.03 | 1.96 | 2.17 | 2.12 | 2.07 | 2.05 | 2.24 | 2.18 | 2.11 | 2.08 | 2.24 | 2.21 | 2.21 | 2.15 | 2.25 | 2.15 | 1.98 | 1.91 |
Solvency ratios provide insights into a company's ability to meet its long-term financial obligations. Looking at Korn Ferry's solvency ratios over the past few quarters, we observe a stable trend in the debt-to-assets ratio, which has remained around 0.11 to 0.15. This indicates that Korn Ferry has maintained a relatively low level of debt compared to its assets, suggesting a strong financial position in terms of asset coverage.
The debt-to-capital and debt-to-equity ratios have also shown consistency, hovering between 0.18 to 0.24 and 0.22 to 0.32, respectively. These ratios indicate the proportion of financing that comes from debt versus capital or shareholders' equity. Korn Ferry's ratios suggest that a significant portion of its capital structure is debt-based, but within a reasonable range that is not overly leveraged.
The financial leverage ratio, which measures the company's total assets relative to its equity, has shown some fluctuations but generally remained between 1.91 to 2.25. This ratio indicates the extent to which the company relies on debt to finance its assets. The variations in this ratio may reflect changes in the company's capital structure over time.
Overall, Korn Ferry's solvency ratios suggest that the company has maintained a healthy balance between debt and equity in its capital structure, indicating a solid ability to manage its long-term financial obligations.
Coverage ratios
| Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1,004.38 | 962.06 | 807.25 | 1,334.23 | 1,664.95 | 2,375.85 | 3,731.50 | 4,448.31 | 5,596.12 | 4,745.15 | 3,637.12 | 2,811.53 | 1,366.53 | 752.12 | 444.27 | 513.54 | 1,181.38 | 50.41 | 28.98 | 19.98 |
The interest coverage ratio for Korn Ferry has shown significant fluctuations over the past few quarters. It is calculated by dividing the company's earnings before interest and taxes (EBIT) by its interest expenses. A higher interest coverage ratio indicates that the company is in a better position to meet its interest obligations.
Looking at the data provided, we can see that Korn Ferry's interest coverage ratio has ranged from a low of 19.98 to a high of 5,596.12 over the last several quarters. The company's interest coverage peaked at 5,596.12 on Apr 30, 2022, indicating a very strong ability to cover its interest payments with its earnings. However, this ratio decreased in subsequent quarters but remained above 1, suggesting that Korn Ferry continued to earn significantly more than its interest expenses.
The interest coverage ratio hit a low of 19.98 on Jul 31, 2019, signaling a potential concern about the company's ability to cover its interest payments with its earnings during that period. However, the ratio has since improved and remained relatively strong in recent quarters.
Overall, Korn Ferry's interest coverage ratio has exhibited variability but has generally reflected a solid ability to handle its interest obligations with its operating income. It's important for investors and stakeholders to monitor this ratio to assess the company's financial health and sustainability in meeting its debt obligations.