Patterson Companies Inc (PDCO)

Patterson Companies Inc's solvency ratios reflect its ability to meet its long-term debt obligations. The trend of the debt-to-assets ratio has shown a consistent improvement over the past five years, decreasing from 0.22 in 2020 to 0.11 in 2024. This indicates that the company is relying less on debt to finance its assets, which is generally viewed positively by investors and creditors.

Similarly, the debt-to-capital ratio has also seen a declining trend, decreasing from 0.41 in 2020 to 0.25 in 2024. This suggests that Patterson Companies Inc is relying less on debt in comparison to its total capital structure.

The debt-to-equity ratio has exhibited a decreasing trend as well, from 0.70 in 2020 to 0.33 in 2024. This indicates that the company's reliance on debt financing in relation to equity has decreased over the years.

Lastly, the financial leverage ratio has shown fluctuation but has decreased overall from 3.26 in 2020 to 2.89 in 2024. This indicates a reduction in the company's financial risk and dependency on debt to finance its operations.

Overall, the improvement in all solvency ratios suggests a strengthening financial position for Patterson Companies Inc, demonstrating a better ability to manage its debt and maintain financial stability and solvency.

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Coverage ratios

The interest coverage ratio for Patterson Companies Inc has shown fluctuating trends over the past five years. The ratio indicates the company's ability to meet its interest obligations from its earnings before interest and taxes.

In April 2024, the interest coverage ratio was 6.42, which suggests that the company's operating profits were able to cover its interest expense 6.42 times over. This ratio declined compared to the previous year, indicating a potential decrease in the company's ability to cover its interest payments.

In April 2023 and April 2022, the interest coverage ratios were higher at 9.06 and 14.20, respectively, reflecting a stronger ability to meet interest obligations from operating profits. These years show healthy interest coverage ratios, indicating a comfortable margin of safety for the company.

However, in April 2021, the ratio dropped to 9.27, which was still relatively healthy but lower than in previous years. This minor decline may warrant further monitoring to ensure the company's ability to cover interest payments.

Notably, in April 2020, the interest coverage ratio was negative at -13.11, indicating that the company's operating profits were insufficient to cover its interest expenses. This negative ratio raises concerns about the company's financial health and ability to service its debt obligations.

Overall, while Patterson Companies Inc has displayed varying levels of interest coverage over the past five years, it is crucial for investors and stakeholders to closely monitor this ratio to assess the company's financial stability and ability to meet its debt commitments.