Lancaster Colony Corporation (LANC)
Solvency ratios
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 1.30 | 1.28 | 1.26 | 1.29 | 1.29 | 1.33 | 1.29 | 1.31 | 1.29 | 1.32 | 1.30 | 1.31 | 1.31 | 1.29 | 1.28 | 1.28 | 1.27 | 1.28 | 1.27 | 1.28 |
Based on the provided solvency ratios for Lancaster Colony Corporation, we can see that the debt-related ratios such as debt-to-assets, debt-to-capital, and debt-to-equity ratios have consistently remained at 0.00 over the past few quarters. This indicates that the company has not utilized debt financing to support its assets, capital structure, or equity position during the periods under review.
On the other hand, the financial leverage ratio has shown some fluctuation over the same quarters, ranging from 1.26 to 1.33. This ratio measures the extent to which a company is using debt to finance its operations. The upward and downward movements in the financial leverage ratio suggest changes in the company's capital structure and its reliance on debt to generate returns for its shareholders.
Overall, the stable debt-related ratios at zero levels imply that Lancaster Colony has been operating with a conservative debt approach, while the fluctuations in the financial leverage ratio indicate that the company's capital structure has experienced some shifts in recent quarters. Further analysis of the reasons behind these changes would be necessary to fully understand the company's solvency position.
Coverage ratios
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 207.55 | 114.92 | 78.41 | 65.21 | 15.27 | 2.40 | 2.30 | 2.15 | 2.79 | — | — | — | 11,569.38 | 5,226.82 | 3,267.77 | 2,410.25 | 2,356.49 | 2,421.18 | 3,336.34 |
The interest coverage ratio for Lancaster Colony Corporation has shown fluctuations over the past few quarters. As of June 30, 2024, the company did not report this ratio. However, in March 2024, the interest coverage stood at 207.55, indicating a strong ability to meet interest obligations.
Looking further back, in December 2023, the ratio was 114.92, which also reflected a healthy coverage level. In the following quarters, the interest coverage gradually declined to 78.41 in September 2023, 65.21 in June 2023, and significantly dropped to 15.27 in March 2023.
Remarkably, there was a large spike in interest coverage in December 2022 at 11,569.38, which seems unusual and could potentially be a result of extraordinary events or accounting anomalies. Subsequently, the ratio normalized to more reasonable levels in the following quarters.
Overall, the interest coverage has generally been above 2, indicating that Lancaster Colony Corporation has comfortably generated enough earnings to cover its interest expenses in most periods. It is essential for investors and creditors to assess the company's ability to meet its debt obligations consistently over time, considering the fluctuations in the interest coverage ratio.