Vail Resorts Inc (MTN)
Solvency ratios
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.48 | 0.46 | 0.47 | 0.47 | 0.46 | 0.45 | 0.42 | 0.44 | 0.42 | 0.42 | 0.42 | 0.43 | 0.44 | 0.44 | 0.45 | 0.44 | 0.46 | 0.45 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.79 | 0.73 | 0.77 | 0.81 | 0.73 | 0.69 | 0.66 | 0.69 | 0.62 | 0.59 | 0.63 | 0.65 | 0.63 | 0.61 | 0.65 | 0.67 | 0.64 | 0.62 | 0.00 | 0.00 |
| Debt-to-equity ratio | 3.76 | 2.69 | 3.28 | 4.32 | 2.74 | 2.18 | 1.91 | 2.19 | 1.66 | 1.47 | 1.72 | 1.89 | 1.72 | 1.54 | 1.89 | 2.05 | 1.81 | 1.66 | 0.00 | 0.00 |
| Financial leverage ratio | 7.88 | 5.79 | 7.05 | 9.10 | 5.92 | 4.87 | 4.49 | 4.97 | 3.92 | 3.50 | 4.07 | 4.39 | 3.92 | 3.52 | 4.22 | 4.62 | 3.98 | 3.72 | 3.59 | 3.96 |
The solvency ratios of Vail Resorts Inc over the past two years show a generally stable but fluctuating trend. The debt-to-assets ratio has hovered around the 0.45 to 0.48 range, indicating that approximately 45-48% of the company's assets are financed by debt. This suggests a moderate level of leverage.
The debt-to-capital ratio has shown some variability, ranging from 0.59 to 0.81, indicating that debt accounts for around 59-81% of the company's capital structure. The trend suggests that the company has been relying more heavily on debt financing, which may increase financial risk.
The debt-to-equity ratio has shown fluctuations as well, ranging from 1.47 to 4.32. This ratio indicates that the company's equity is being leveraged multiple times with debt. The increasing trend in this ratio may raise concerns about the company's ability to meet its debt obligations.
The financial leverage ratio, which reflects the extent to which the company uses debt to fund its operations, has shown variability from 3.50 to 9.10. This indicates that the company has been leveraging its operations more heavily in some periods compared to others.
Overall, while Vail Resorts Inc maintains a moderate level of leverage based on the debt-to-assets ratio, the increasing trend in the debt-to-capital and debt-to-equity ratios suggests a growing reliance on debt financing, which may increase financial risk and impact the company's solvency in the long run. It is essential for the company to carefully manage its debt levels to ensure sustainability and financial stability.
Coverage ratios
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.03 | 3.30 | 3.05 | 2.96 | 3.33 | 3.76 | 4.13 | 4.06 | 3.95 | 3.38 | 2.43 | 1.78 | 1.85 | 1.97 | 0.77 | 1.57 | 2.00 | 2.76 | 5.19 | 5.40 |
The interest coverage ratio for Vail Resorts Inc has shown fluctuations over the past few years. As of July 31, 2024, the interest coverage ratio stands at 3.03, indicating that the company's operating income is able to cover its interest expenses 3.03 times. This suggests a solid ability to meet its interest payment obligations.
The trend in interest coverage ratios from October 2019 to July 2024 shows some variation, with the ratio peaking at 5.40 in January 2020 and hitting a low of 0.77 in January 2021. The ratio has generally been above 1.5, which is considered the minimum threshold for a healthy interest coverage ratio.
Overall, Vail Resorts Inc has demonstrated a relatively consistent ability to cover its interest expenses with operating income, though fluctuations in the ratio over the years indicate varying levels of financial strength and stability. It would be important to continue monitoring this ratio to ensure the company's ability to meet its interest obligations remains stable in the future.