Leslies Inc (LESL)
Solvency ratios
| Sep 30, 2024 | 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.73 | 0.70 | 0.70 | 0.77 | 0.75 | 0.68 | 0.67 | 0.72 | 0.70 | 0.70 | 0.84 | 0.97 | 0.75 | 0.79 | 0.92 | 1.07 |
| Debt-to-capital ratio | 1.30 | 1.28 | 1.43 | 1.35 | 1.26 | 1.30 | 1.49 | 1.41 | 1.34 | 1.50 | 1.97 | 1.95 | 1.38 | 1.51 | 1.98 | 1.94 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Leslies Inc's solvency ratios have exhibited fluctuation over the periods analyzed. The debt-to-assets ratio has generally ranged between 0.67 and 0.77, with a recent increase to 0.73 as of September 30, 2024. This ratio indicates that 73% of the company's assets are financed by debt, showing a moderate level of leverage.
The debt-to-capital ratio has also varied, ranging from 1.26 to 1.97, with a recent decrease to 1.30 as of September 30, 2024. This ratio reflects the proportion of the company's capital that is financed by debt, with the current ratio indicating that 130% of Leslies Inc's capital structure is debt-funded.
The absence of data for the debt-to-equity ratio and the financial leverage ratio limits a comprehensive analysis of Leslies Inc's solvency position. However, considering the trends in the available ratios, the company appears to be managing its debt levels within a tolerable range, with room for improvement in optimizing its capital structure and reducing reliance on debt financing. Further analysis would be necessary to provide a more nuanced assessment of the company's solvency position.
Coverage ratios
| Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 0.81 | 0.98 | 1.25 | 1.34 | 1.56 | 2.54 | 4.32 | 6.10 | 7.88 | 7.92 | 7.53 | 7.32 | 5.74 |
The interest coverage ratio for Leslies Inc has shown fluctuations over the past few quarters. The ratio has been declining since reaching a peak of 7.88 in September 2022, indicating a decreasing ability to cover interest expenses with operating profits.
In the most recent quarter, ending September 30, 2024, the interest coverage ratio stands at 0.81, which is below 1. This suggests that the company's operating profits are not sufficient to cover its interest expenses, indicating a potentially precarious financial situation.
It is noteworthy that the trend of declining interest coverage ratios over multiple quarters may raise concerns among investors and creditors about Leslies Inc's ability to meet its debt obligations through operating earnings alone. Management may need to closely monitor the company's financial performance and take necessary measures to improve interest coverage and overall financial health.