Sally Beauty Holdings Inc (SBH)
Solvency ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.36 | 0.39 | 0.40 | 0.50 | 0.63 |
| Debt-to-capital ratio | 0.62 | 0.68 | 0.78 | 0.84 | 0.99 |
| Debt-to-equity ratio | 1.60 | 2.09 | 3.53 | 5.10 | 118.96 |
| Financial leverage ratio | 4.44 | 5.36 | 8.78 | 10.14 | 187.47 |
Sally Beauty Holdings Inc has shown a consistent improvement in its solvency ratios over the past five years. The debt-to-assets ratio has decreased from 0.63 in 2020 to 0.36 in 2024, indicating that the company has reduced its reliance on debt to finance its assets. This improvement suggests better financial stability and a lower risk of insolvency.
Similarly, the debt-to-capital ratio has declined from 0.99 in 2020 to 0.62 in 2024, showing that the proportion of debt used to finance the company's operations has decreased. This trend is positive as it signifies a stronger capital structure and reduced financial risk.
The debt-to-equity ratio has shown a significant improvement from 118.96 in 2020 to 1.60 in 2024. This sharp decline indicates that the company has reduced its debt levels relative to equity, resulting in a more balanced and sustainable capital structure.
Finally, the financial leverage ratio has also improved steadily from 187.47 in 2020 to 4.44 in 2024. This decreasing trend reflects a lower reliance on borrowed funds and a stronger equity base, indicating improved solvency and financial health.
Overall, the declining trend in all solvency ratios highlights Sally Beauty Holdings Inc's efforts to strengthen its financial position, reduce debt levels, and enhance its ability to meet its financial obligations in the long term.
Coverage ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.70 | 4.45 | 3.61 | 4.47 | 3.34 |
The interest coverage ratio for Sally Beauty Holdings Inc has fluctuated over the past five years. It indicates the company's ability to meet its interest obligations with its operating income.
In 2024, the interest coverage ratio was 3.70, which suggests that the company's operating income was able to cover its interest expenses 3.70 times over. This ratio decreased from the previous year's 4.45, indicating a potential decrease in the company's ability to cover interest payments.
Looking back further, the interest coverage ratio was 3.61 in 2022, 4.47 in 2021, and 3.34 in 2020. These figures show some variability in the company's ability to service its interest expenses over this period.
Overall, while the interest coverage ratio for Sally Beauty Holdings Inc has varied, it is essential to monitor trends over time to assess the company's financial health and ability to meet its debt obligations.