Leslies Inc (LESL)

The solvency ratios for Leslies Inc indicate its ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a slight improvement over the past two years, decreasing from 0.75 in 2023 to 0.73 in 2024. This suggests that the company's proportion of debt relative to its total assets has decreased, which can be seen as a positive trend in terms of financial stability.

The debt-to-capital ratio has fluctuated slightly over the same period, with a decrease in 2024 compared to 2023. This ratio provides insight into the company's financial structure by measuring the proportion of debt compared to total capital. The decrease in this ratio indicates that the company may be relying less on debt financing and potentially strengthening its financial position.

Unfortunately, the data does not include information on the debt-to-equity ratio or the financial leverage ratio for deeper insights into the company's leverage and solvency. It would be beneficial to have this additional information to assess the capital structure and financial risk of Leslies Inc more comprehensively. Overall, based on the available solvency ratios, the company appears to be making progress in managing its debt levels and improving its financial health.

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Coverage ratios

The interest coverage ratio of Leslies Inc has experienced fluctuations over the past four years, indicating varying levels of the company's ability to cover its interest expenses with its operating income.

In 2024, the interest coverage ratio significantly dropped to 0.81 from 1.56 in 2023. This substantial decline suggests that the company's operating income may not be sufficient to cover its interest expenses, raising concerns about its financial stability and ability to meet debt obligations.

Similarly, in 2022, the interest coverage ratio was much higher at 7.88, indicating a strong ability to cover interest payments with operating income. This improvement from the previous year demonstrates a positive trend in the company's financial health.

In 2021, the interest coverage ratio was 5.74, reflecting a solid ability to meet interest obligations with operating profits. This suggests that the company had a healthy financial position and was comfortably covering its interest expenses.

Overall, the fluctuating trend in Leslies Inc's interest coverage ratio highlights the importance of monitoring the company's ability to generate sufficient operating income to meet its interest obligations and maintain financial stability.