PVH Corp (PVH)

PVH Corp's solvency ratios demonstrate a consistent improvement in its financial leverage and debt management over the past five years. The debt-to-assets ratio has decreased from 0.26 in January 31, 2021, to 0.14 in February 4, 2024, indicating a lower proportion of debt relative to the company's total assets. This suggests a strengthened ability of PVH Corp to cover its obligations with its assets.

Similarly, the debt-to-capital ratio has shown a decreasing trend from 0.43 in January 31, 2021, to 0.24 in February 4, 2024. This decline signifies a reduced reliance on debt financing in relation to total capital, implying a more balanced capital structure.

The debt-to-equity ratio has also improved from 0.74 in January 31, 2021, to 0.31 in February 4, 2024. This indicates that PVH Corp's reliance on debt funding has declined in comparison to equity, enhancing its financial stability and creditworthiness.

Moreover, the financial leverage ratio has shown a consistent decline from 2.81 in January 31, 2021, to 2.18 in February 4, 2024. A decreasing financial leverage ratio suggests a reduction in the company's dependence on debt to finance its operations, highlighting a healthier balance sheet structure and lower financial risk.

In conclusion, PVH Corp's solvency ratios have displayed a positive trend over the past five years, reflecting improved debt management and a stronger financial position. This improvement bodes well for the company's ability to meet its financial obligations and indicates a more sustainable capital structure.

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Coverage ratios

The interest coverage ratio for PVH Corp has shown variability over the past five fiscal years. In the most recent fiscal year ending on February 4, 2024, the interest coverage ratio was 9.47, indicating an improvement from the previous year. This suggests that the company's ability to meet its interest obligations from its operating income has strengthened.

In comparison, the interest coverage ratio was 5.33 on January 29, 2023, which was lower than the most recent year but still reflected a reasonable ability to cover interest payments with operating income.

On January 30, 2022, the interest coverage ratio was 9.96, demonstrating a strong ability to pay interest expenses from operational earnings.

However, on January 31, 2021, the interest coverage ratio was negative at -8.49, indicating that the company's operating income was not sufficient to cover its interest expenses during that period. This could be a cause for concern as it indicates a potential risk in meeting debt obligations from operating profits.

Finally, on February 2, 2020, the interest coverage ratio was 4.72, showing a moderate ability to cover interest payments with operating income compared to other years.

Overall, the trend in interest coverage for PVH Corp has been mixed, with some years showing strong coverage and others indicating challenges in meeting interest obligations. Management should continue to monitor and improve the company's ability to generate sufficient operating income to cover interest expenses effectively.