Leslies Inc (LESL)
Solvency ratios
| 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 | 0.77 | 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 | 1.35 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — |
The solvency ratios of Leslies Inc over the past ten quarters indicate fluctuations in the company's leverage and ability to meet its financial obligations. The debt-to-assets ratio has ranged from 0.67 to 0.97 in the period analyzed, with a notable increase from 0.67 in Mar 31, 2023, to 0.97 in Dec 31, 2021. This implies that the company's debt level in relation to its total assets has been relatively high, signaling a significant portion of assets being financed by debt.
Similarly, the debt-to-capital ratio has varied between 1.26 and 1.98, indicating fluctuations in how much of the company's capital structure is funded by debt. The ratio peaked at 1.98 in Mar 31, 2022, and has shown some volatility since then. This suggests that Leslies Inc has been relying on debt financing to a significant extent, potentially increasing financial risk.
The absence of data for the debt-to-equity and financial leverage ratios makes it challenging to provide a comprehensive assessment of Leslies Inc's capital structure and leverage levels. However, based on the available ratios, it is evident that the company has been managing its solvency by balancing debt levels with its asset base and capital structure, although the observed fluctuations call for a closer examination of the company's financial health and risk management practices.
Coverage ratios
| 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 | 1.34 | 1.56 | 2.54 | 4.32 | 6.10 | 7.88 | 7.92 | 7.53 | 7.32 | 5.74 |
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest payments.
Looking at the trend for Leslies Inc's interest coverage ratio from December 2021 to December 2023, we can see a general decline in the ratio. In December 2021, the interest coverage ratio was 7.32, indicating that the company's earnings were 7.32 times greater than its interest expenses.
However, by December 2023, the interest coverage ratio had decreased to 1.34, suggesting that the company's ability to cover its interest payments had weakened significantly. This downward trend in the interest coverage ratio could raise concerns about Leslies Inc's ability to service its debt obligations with its current level of earnings.
Overall, the decreasing trend in the interest coverage ratio for Leslies Inc over the period raises red flags regarding the company's financial health and ability to meet its debt obligations. Further analysis and monitoring of the company's financial performance and debt management practices would be advisable to assess and address potential risks.