Sally Beauty Holdings Inc (SBH)
Solvency ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.36 | 0.36 | 0.36 | 0.39 | 0.39 | 0.40 | 0.40 | 0.40 | 0.40 | 0.39 | 0.51 | 0.50 | 0.50 | 0.52 | 0.57 | 0.62 | 0.63 | 0.57 | 0.46 | 0.61 |
| Debt-to-capital ratio | 0.62 | 0.63 | 0.64 | 0.67 | 0.68 | 0.69 | 0.71 | 0.74 | 0.78 | 0.78 | 0.84 | 0.84 | 0.84 | 0.87 | 0.92 | 0.95 | 0.99 | 1.04 | 1.04 | 1.00 |
| Debt-to-equity ratio | 1.60 | 1.71 | 1.79 | 1.99 | 2.09 | 2.19 | 2.50 | 2.83 | 3.53 | 3.52 | 5.17 | 5.06 | 5.10 | 6.49 | 12.28 | 18.88 | 118.96 | — | — | 738.50 |
| Financial leverage ratio | 4.44 | 4.71 | 4.99 | 5.05 | 5.36 | 5.49 | 6.28 | 7.15 | 8.78 | 9.08 | 10.09 | 10.16 | 10.14 | 12.50 | 21.58 | 30.34 | 187.47 | — | — | 1,216.49 |
The solvency ratios of Sally Beauty Holdings Inc show a trend of fluctuation over the periods presented. The debt-to-assets ratio remained relatively stable around 0.36 to 0.51 from 2019 to mid-2022, but increased to 0.62 by Sep 30, 2024. This indicates that the company's debt as a proportion of its total assets has been increasing.
The debt-to-capital ratio followed a similar pattern, staying between 0.62 and 0.84 from 2019 to mid-2022, then escalating to 0.95 by Dec 31, 2020, and reaching 1.04 by Sep 30, 2024. This suggests that the company's financial leverage and reliance on debt in its capital structure have been on the rise over time.
In contrast, the debt-to-equity ratio exhibited significant volatility, ranging from 1.60 to 5.17 from 2019 to mid-2022, before skyrocketing to 738.50 by Dec 31, 2020, and declining to 3.53 by Sep 30, 2024. Such a fluctuating trend indicates a shift in the company's capital structure and potentially its ability to meet its financial obligations in the past.
The financial leverage ratio, which represents the extent to which the company relies on debt to finance its operations, increased substantially over time, peaking at 1,216.49 by Dec 31, 2021. This indicates a significant increase in the company's leverage and potential financial risk over the analyzed periods.
In conclusion, the solvency ratios of Sally Beauty Holdings Inc reflect a mixed picture of its financial health, with increasing debt levels and financial leverage, as well as significant fluctuations in its capital structure and debt-to-equity ratio over the past few years. These trends may signal potential challenges in managing debt obligations and financial risks in the future.
Coverage ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.70 | 3.54 | 3.88 | 4.25 | 4.45 | 4.06 | 3.37 | 3.41 | 3.61 | 4.25 | 5.23 | 4.86 | 4.47 | 4.20 | 2.85 | 2.60 | 2.62 | 2.75 | 4.10 | 4.75 |
The interest coverage ratio for Sally Beauty Holdings Inc has fluctuated over the past few quarters, ranging between 2.60 and 5.23. The trend indicates that the company has been able to cover its interest expenses comfortably, with higher ratios indicating better ability to meet interest payments from operating profits.
In the most recent quarter, the interest coverage ratio stands at 3.70, reflecting the company's ability to generate operating income that is 3.7 times the amount of interest expense incurred during the period. This suggests that the company has a reasonable level of financial flexibility and is not overly burdened by its interest obligations.
Overall, the historical trend of the interest coverage ratio for Sally Beauty Holdings Inc indicates a relatively stable ability to meet interest payments, with some fluctuations seen over time. Investors and creditors may find this data reassuring as it indicates the company's ability to manage its debt servicing obligations effectively.