Korn Ferry (KFY)
Solvency ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.04 | 1.98 | 1.97 | 2.12 | 2.09 | 2.03 | 2.46 | 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 |
The analysis of Korn Ferry's solvency ratios, based on the provided data, reveals the following insights:
Debt-to-Assets Ratio:
Throughout the examined periods from April 2020 through January 2025, Korn Ferry maintains a debt-to-assets ratio consistently at zero. This indicates that the company does not carry any debt relative to its total assets, reflecting an exclusively equity-financed capital structure during this timeframe.
Debt-to-Capital Ratio:
Similarly, the debt-to-capital ratio remains at zero across all specified dates. This measurement further confirms the absence of debt within the company's capital framework, signifying that all capital is sourced from equity.
Debt-to-Equity Ratio:
The debt-to-equity ratio is uniformly reported as zero for every period under review, reinforcing the conclusion that Korn Ferry operates without any debt obligations in its financial structure. This implies that the company's equity entirely funds its assets, with no leveraging from borrowed funds.
Financial Leverage Ratio:
The financial leverage ratio exhibits variability within a range approximately between 1.97 and 2.46 throughout the observed periods. This ratio indicates that the company's assets are financed primarily through equity, with modest variation in leverage levels over time. Although the ratios fluctuate, the overall pattern suggests that Korn Ferry maintains relatively conservative leverage, predominantly operating with equity funding.
Summary:
Collectively, the data demonstrates that Korn Ferry has maintained a debt-free financial position across multiple periods, as evidenced by zero values in the debt-to-assets, debt-to-capital, and debt-to-equity ratios. The consistent absence of debt suggests a conservative approach to leverage. The financial leverage ratio, although variable, remains within a moderate range indicative of a reliance on equity rather than debt financing. This solvency profile signifies robust financial stability and a low risk of insolvency from leverage-related vulnerabilities.
Coverage ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 18.34 | 16.94 | 15.64 | 13.39 | 11.93 | 12.14 | 13.08 | 13.81 | 15.39 | 16.54 | 16.92 | 18.12 | 16.30 | 14.68 | 11.93 | 6.61 | 3.76 | 2.83 | 3.65 | 8.23 |
The interest coverage ratios for Korn Ferry over the specified periods demonstrate a noteworthy trend characterized by initial fluctuations followed by a general stabilization at elevated levels.
Between April 30, 2020, and October 31, 2020, the ratio declined from 8.23 to 2.83, indicating a significant reduction in the company's ability to cover its interest expenses. This drop may correspond to increased interest obligations, reduced earnings, or both, potentially reflecting the impact of the early COVID-19 pandemic period and the associated economic uncertainties.
Subsequently, from January 31, 2021, onward, the interest coverage ratio exhibited a marked upward trajectory. By July 31, 2021, it had escalated to 11.93, and it continued to increase through October 2021 (14.68), with further growth confirmed into early 2022, reaching a peak of 18.12 by April 30, 2022. This progression suggests a substantial improvement in the company's capacity to service interest obligations, likely driven by increased earnings or a reduction in interest expense, possibly facilitated by operational recovery or strategic financial management.
From mid-2022 onward, the ratios remained relatively high, fluctuating between approximately 13 and 16.54, indicating sustained strong earnings relative to interest expenses. Notably, the interest coverage ratio remained above 10 from January 2022 through October 2023, indicative of a robust financial position with limited concern regarding interest coverage.
Looking forward, projections for the next periods suggest continued strength, with ratios forecasted to increase to 18.34 by January 2025. This upward trend reflects expectations of continued earnings growth or optimized interest obligations, further cementing the company's ability to comfortably meet its interest commitments.
Overall, Korn Ferry’s interest coverage ratio experienced a period of stress during early 2020, followed by a steady and significant improvement through 2021 and 2022, maintaining strong coverage levels into the subsequent years. The ongoing positive outlook as indicated by future projections underscores a stable and resilient financial position with respect to interest expense coverage.