Monro Muffler Brake Inc (MNRO)
Solvency ratios
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Dec 23, 2023 | Sep 30, 2023 | Sep 23, 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.05 | 0.00 | 0.03 | 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 | 0.12 | 0.00 | 0.07 | 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 | 0.14 | 0.00 | 0.08 | 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 | — | 2.57 | 2.58 | 2.62 | 2.58 | 2.63 | 2.63 | 2.47 | 2.47 | 2.52 | 2.56 | 2.57 | 2.48 | 2.36 | 2.39 | 2.42 | 2.40 | 2.49 | 2.42 | 2.49 |
The solvency ratios of Monro Muffler Brake Inc indicate the firm's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio describes the proportion of the company's total assets financed by debt. Monro Muffler Brake Inc consistently maintained a low debt-to-assets ratio, indicating a conservative capital structure with minimal reliance on debt to fund its operations. However, there was a slight increase in the ratio from 0.03% as of September 23, 2023, to 0.05% as of December 23, 2023. This uptick may suggest a marginal increase in debt relative to assets during that period.
2. Debt-to-capital ratio: The debt-to-capital ratio measures the percentage of total capitalization that is financed by debt. Monro Muffler Brake Inc showed a similar pattern to the debt-to-assets ratio, with minimal debt usage in its capital structure. Notably, there were spikes in the ratio from 0.07% as of September 23, 2023, to 0.12% as of December 23, 2023. These increases could indicate a temporary shift towards more debt financing.
3. Debt-to-equity ratio: The debt-to-equity ratio compares a company's total debt to its shareholders' equity. Just like the previous ratios, Monro Muffler Brake Inc maintained a low debt-to-equity ratio, reflecting a strong equity position in relation to its debt levels. There was an uptick in the ratio from 0.08% as of September 23, 2023, to 0.14% as of December 23, 2023, potentially suggesting a rise in debt relative to equity during that period.
4. Financial leverage ratio: This ratio provides insight into the proportion of a company's assets that are financed by debt. Monro Muffler Brake Inc displayed a relatively stable financial leverage ratio over the period analyzed. Despite minor fluctuations, the ratio generally stayed within the range of 2.36 to 2.63, indicating a consistent financing structure with moderate reliance on debt.
Overall, Monro Muffler Brake Inc's solvency ratios reflect a conservative approach to financial management, with limited reliance on debt financing. The minor fluctuations observed in some ratios may signal temporary adjustments in the firm's capital structure but do not indicate a significant departure from its overall stable solvency position.
Coverage ratios
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Dec 23, 2023 | Sep 30, 2023 | Sep 23, 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.52 | 2.41 | 2.87 | 3.29 | 3.80 | 4.44 | 4.20 | 3.30 | 3.20 | 3.12 | 3.44 | 2.81 | 3.00 | 3.40 | 3.29 | 4.32 | 3.69 | 3.19 | 2.56 | 1.81 |
The interest coverage ratio of Monro Muffler Brake Inc shows a fluctuating trend over the analyzed periods. The ratio indicates the company's ability to meet its interest obligations from its operating income.
From December 31, 2020 to December 31, 2021, there was a steady increase in the interest coverage ratio, reaching a peak of 4.44. This indicates that the company's operating income was able to cover its interest payments approximately 4.44 times by the end of 2023.
However, after December 31, 2023, the interest coverage ratio started to decline, dropping to 2.52 by March 31, 2025. This decrease could suggest a potential strain on the company's ability to cover its interest expenses with its operating income.
Overall, it is important for Monro Muffler Brake Inc to closely monitor and manage its interest coverage ratio to ensure it remains at a healthy level, indicating financial stability and the ability to meet its debt obligations.