Patterson Companies Inc (PDCO)
Solvency ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Apr 27, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.11 | 0.00 | 0.15 | 0.00 | 0.16 | 0.00 | 0.16 | 0.00 | 0.16 | 0.00 | 0.15 | 0.00 | 0.17 | 0.00 | 0.18 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.25 | 0.00 | 0.32 | 0.00 | 0.30 | 0.00 | 0.29 | 0.00 | 0.29 | 0.00 | 0.29 | 0.00 | 0.32 | 0.00 | 0.32 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.33 | 0.00 | 0.46 | 0.00 | 0.43 | 0.00 | 0.41 | 0.00 | 0.40 | 0.00 | 0.41 | 0.00 | 0.47 | 0.00 | 0.48 | 0.00 |
| Financial leverage ratio | 2.86 | 2.95 | 3.02 | 2.97 | 2.89 | 3.03 | 3.03 | 2.74 | 2.74 | 2.59 | 2.60 | 2.57 | 2.58 | 2.67 | 2.67 | 2.77 | 2.77 | 2.69 | 2.69 | 2.63 |
Patterson Companies Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The Debt-to-assets ratio has shown a consistent pattern, remaining relatively low and stable over the periods reported, indicating that the company's assets are primarily financed through equity rather than debt.
The Debt-to-capital ratio, which reflects the proportion of debt in the company's capital structure, has also remained relatively low, with occasional increases but generally staying below 0.35. This suggests that Patterson Companies relies more on equity financing than debt to fund its operations.
The Debt-to-equity ratio has exhibited a similar trend, showing a low level of debt relative to equity throughout the periods reported. This indicates that the company has a strong equity base to support its activities and is not heavily reliant on borrowing to finance its operations.
The Financial leverage ratio, which measures the company's total assets relative to equity, indicates a modest increase over the reporting periods. However, the ratio remains within a reasonable range, suggesting that Patterson Companies has a stable financial structure with a manageable level of leverage.
Overall, based on the solvency ratios analyzed, Patterson Companies Inc appears to have a solid financial position with a conservative approach to debt management, which is favorable for its long-term stability and growth prospects.
Coverage ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Apr 27, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.74 | 5.45 | 6.00 | 7.06 | 6.65 | 6.19 | 5.91 | 5.65 | 6.76 | 7.87 | 8.54 | 9.20 | 9.15 | 9.11 | 8.95 | 8.77 | 10.22 | 11.58 | 14.19 | 15.84 |
The interest coverage ratio is a financial metric used to assess a company's ability to meet its interest payments on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense. A higher interest coverage ratio indicates a company is more capable of servicing its interest payments.
Based on the data provided for Patterson Companies Inc, the interest coverage ratio has shown a declining trend over the periods specified. The interest coverage ratio decreased from 15.84 as of April 30, 2022, to 4.74 as of January 31, 2025.
A high interest coverage ratio, as seen in the earlier periods, indicates that Patterson Companies Inc had a strong ability to cover its interest expenses with its earnings. However, the declining trend in the interest coverage ratio suggests that the company's ability to meet its interest payments has weakened over time, which could raise concerns about its financial health and ability to manage its debt obligations.
It is important for investors and stakeholders to closely monitor the trend in the interest coverage ratio as a declining ratio may indicate potential financial distress and the need for the company to address its debt levels and interest obligations to maintain its financial stability.