PVH Corp (PVH)
Solvency ratios
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Feb 4, 2024 | Nov 30, 2023 | Oct 29, 2023 | Aug 31, 2023 | Jul 30, 2023 | May 31, 2023 | Apr 30, 2023 | Feb 28, 2023 | Jan 29, 2023 | Nov 30, 2022 | Oct 30, 2022 | Aug 31, 2022 | Jul 31, 2022 | May 31, 2022 | May 1, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.14 | 0.00 | 0.14 | 0.00 | 0.14 | 0.00 | 0.19 | 0.00 | 0.18 | 0.00 | 0.18 | 0.00 | 0.18 | 0.00 | 0.19 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.24 | 0.00 | 0.24 | 0.00 | 0.24 | 0.00 | 0.30 | 0.00 | 0.30 | 0.00 | 0.30 | 0.00 | 0.29 | 0.00 | 0.30 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.31 | 0.00 | 0.31 | 0.00 | 0.32 | 0.00 | 0.43 | 0.00 | 0.43 | 0.00 | 0.44 | 0.00 | 0.41 | 0.00 | 0.42 |
| Financial leverage ratio | 2.15 | 2.13 | 2.16 | 2.13 | 2.18 | 2.18 | 2.21 | 2.21 | 2.29 | 2.29 | 2.24 | 2.24 | 2.35 | 2.35 | 2.36 | 2.36 | 2.29 | 2.29 | 2.26 | 2.26 |
PVH Corp's solvency ratios provide insights into its ability to meet its long-term debt obligations and the extent to which debt is used to finance its operations.
The Debt-to-assets ratio fluctuated over the period analyzed, ranging between 0% and 19%. It indicates the proportion of the company's assets financed by debt, with a lower ratio suggesting lower financial risk and higher asset coverage.
The Debt-to-capital ratio also varied over time, between 0% and 30%. This ratio reflects the proportion of the company's capital structure that is funded by debt. A decreasing ratio may indicate less reliance on debt financing and a more conservative financial structure.
The Debt-to-equity ratio showed fluctuations from 0% to 43%. This ratio reflects the extent to which the company's operations are financed by creditors versus shareholders. A decreasing ratio could imply a lower financial risk and a stronger equity position.
The Financial leverage ratio ranged from 2.13 to 2.36, indicating the company's financial risk and the extent to which it is leveraged through debt financing. A decreasing trend in this ratio may suggest improved financial stability and lower financial risk over time.
Overall, a consistent trend of decreasing solvency ratios could indicate a decreasing reliance on debt financing and a strengthening financial position for PVH Corp. However, fluctuations in these ratios should be further analyzed in conjunction with other financial metrics to gain a holistic understanding of the company's solvency.
Coverage ratios
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Feb 4, 2024 | Nov 30, 2023 | Oct 29, 2023 | Aug 31, 2023 | Jul 30, 2023 | May 31, 2023 | Apr 30, 2023 | Feb 28, 2023 | Jan 29, 2023 | Nov 30, 2022 | Oct 30, 2022 | Aug 31, 2022 | Jul 31, 2022 | May 31, 2022 | May 1, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 8.54 | 9.73 | 11.47 | 12.15 | 12.56 | 10.40 | 7.99 | 7.52 | 7.14 | 8.61 | 10.43 | 6.28 | 1.96 | 0.90 | -0.49 | 4.31 | 9.00 | 9.03 | 9.22 | 9.44 |
Interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates that the company is more capable of servicing its interest expenses.
Looking at the interest coverage ratios of PVH Corp provided over the past few quarters, the trend shows some fluctuations. The company's interest coverage was relatively stable and healthy in the range of 9 to 10 from May 2022 to May 2023. This indicated a comfortable ability to cover its interest obligations.
However, there was a significant decline in the interest coverage ratio in the November 2023 quarter, dropping to a negative value of -0.49. This sharp decrease signals potential financial distress as the company's operating income was insufficient to cover its interest expenses during that period.
Subsequently, PVH Corp managed to improve its interest coverage ratio to above 6 in the following quarters, displaying a partial recovery. The company's interest coverage ratio rose above 10 in May 2023 and February 2024, indicating a strong ability to service its interest payments.
Overall, while PVH Corp experienced some fluctuations in its interest coverage ratio, leading to a period of concern in November 2023, the subsequent improvement suggests efforts to enhance its financial position and ability to meet interest obligations. Monitoring this ratio over time is crucial to assess the company's financial health and its capacity to handle debt obligations.