Vail Resorts Inc (MTN)
Solvency ratios
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.48 | 0.46 | 0.42 | 0.44 | 0.46 |
| Debt-to-capital ratio | 0.79 | 0.73 | 0.62 | 0.63 | 0.64 |
| Debt-to-equity ratio | 3.76 | 2.74 | 1.66 | 1.72 | 1.81 |
| Financial leverage ratio | 7.88 | 5.92 | 3.92 | 3.92 | 3.98 |
Vail Resorts Inc's solvency ratios depict its ability to meet its long-term financial obligations and the extent to which it relies on debt financing.
- The Debt-to-assets ratio has shown a slightly increasing trend over the past five years, reaching 0.48 in July 2024. This indicates that 48% of the company's assets are financed by debt.
- The Debt-to-capital ratio has also shown an increasing trend, reaching 0.79 in July 2024. This suggests that 79% of the company's capital structure is funded by debt.
- The Debt-to-equity ratio has demonstrated a significant increase, reaching 3.76 in July 2024. This points out that for every dollar of equity, the company has $3.76 in debt.
- The Financial leverage ratio has displayed a consistent increase over the years, reaching 7.88 in July 2024. This implies that the company has debt that is nearly 7.88 times its equity, indicating high financial leverage.
Overall, the solvency ratios of Vail Resorts Inc indicate a growing reliance on debt to finance its operations and expansions. The increasing ratios suggest that the company's financial risk has been elevated over the years as it has taken on more debt relative to its assets, capital, and equity. Investors and stakeholders should monitor these trends to assess the company's ability to manage its debt levels prudently and withstand economic challenges.
Coverage ratios
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.03 | 3.33 | 3.95 | 1.85 | 2.00 |
The interest coverage ratio for Vail Resorts Inc has been relatively stable over the past five years, ranging from 1.85 to 3.95. A higher interest coverage ratio indicates that the company is more capable of meeting its interest payment obligations from its operating income. During the period in review, the interest coverage ratio peaked in 2022 at 3.95, suggesting a stronger ability to cover interest expenses. However, in 2021, the ratio dropped to 1.85, which could indicate a potential strain on the company's ability to cover interest costs with its operating income. Overall, Vail Resorts Inc has generally maintained a healthy interest coverage ratio, indicating a satisfactory ability to handle its interest obligations.