Monro Muffler Brake Inc (MNRO)
Solvency ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.06 | 0.06 | 0.09 | 0.10 | 0.28 |
| Debt-to-capital ratio | 0.13 | 0.13 | 0.18 | 0.20 | 0.44 |
| Debt-to-equity ratio | 0.16 | 0.15 | 0.23 | 0.25 | 0.77 |
| Financial leverage ratio | 2.58 | 2.56 | 2.39 | 2.42 | 2.79 |
Monro Muffler Brake Inc's solvency ratios indicate a strong financial position with respect to the company's ability to meet its long-term obligations. The debt-to-assets ratio has been consistently low over the past five years, ranging from 0.06 to 0.28, indicating that only a small portion of the company's assets are financed by debt.
Similarly, the debt-to-capital and debt-to-equity ratios also show a declining trend over the years, reflecting Monro Muffler Brake's decreasing reliance on debt to finance its operations. The debt-to-capital ratio has decreased from 0.44 in 2020 to 0.13 in 2024, indicating that the company has been able to reduce its debt relative to its total capital.
The financial leverage ratio, which measures the extent to which a company is using debt to finance its operations, has also shown a decreasing trend over the past five years. This signifies that Monro Muffler Brake has been successful in managing its debt levels and maximizing its equity contributions to fund its assets.
Overall, the solvency ratios of Monro Muffler Brake Inc suggest a healthy balance sheet and the company's ability to sustain its operations and meet its financial obligations over the long term.
Coverage ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 5.29 | 4.95 | 5.52 | 3.94 | 4.77 |
The interest coverage ratio measures Monro Muffler Brake Inc's ability to meet its interest obligations. A higher interest coverage ratio indicates that the company is more capable of servicing its interest payments.
Based on the data provided, Monro Muffler Brake Inc's interest coverage ratios have shown a relatively positive trend over the last five years. The company's interest coverage ratios have ranged from a low of 3.94 in March 2021 to a high of 5.52 in March 2022, with the latest ratio at 5.29 as of March 2024.
This trend suggests that Monro Muffler Brake Inc has generally been able to comfortably cover its interest expenses with its operating income over the years. A consistently high interest coverage ratio reflects the company's financial health and its ability to manage debt effectively.
Overall, the trend in Monro Muffler Brake Inc's interest coverage ratios indicates that the company has been maintaining a solid ability to meet its interest obligations, which is a positive signal for investors and creditors alike.