Shoe Carnival Inc (SCVL)

The solvency ratios of Shoe Carnival Inc over the past five years indicate a consistently low level of leverage and debt utilization. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all remained at 0.00 during this period, suggesting that the company has not relied on debt financing to support its assets or operations.

However, the financial leverage ratio has shown some fluctuations, with values ranging from 1.79 to 2.11. Although the financial leverage ratio has increased slightly from 1.79 in 2022 to 2.11 in 2020, it remains at a moderate level, indicating that the company has a relatively low level of debt compared to its equity.

Overall, Shoe Carnival Inc's solvency ratios reflect a conservative financial structure with limited reliance on debt to fund its operations and investments. This prudent approach to leverage indicates that the company has a strong financial position and may have lower financial risk compared to companies with higher debt levels.

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Coverage ratios

Shoe Carnival Inc's interest coverage ratio has shown significant fluctuations over the past five years. The interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income.

In the most recent year, as of February 3, 2024, Shoe Carnival Inc's interest coverage ratio stands at 341.92, signifying a strong ability to cover its interest expenses. This indicates that the company's operating income is 341.92 times its interest expense, reflecting a robust financial position.

The interest coverage ratio has been consistently healthy over the past few years, with notable peaks in January 2023 and January 2022, where the ratios were 501.41 and 434.47 respectively. These high ratios indicate the company's ability to comfortably meet its interest payments.

However, there was a significant drop in the interest coverage ratio in January 30, 2021, where it fell to 53.31. This suggests that the company's operating income was just sufficient to cover its interest payments at that time, raising a concern about the company's ability to service its debt obligations efficiently.

The ratio rebounded in February 1, 2020, reaching 287.64, indicating improved performance in covering interest expenses compared to the previous year.

Overall, Shoe Carnival Inc's interest coverage has generally been strong over the past five years, with some fluctuations. Investors and creditors may find the current interest coverage ratio of 341.92 reassuring, but they should keep a close eye on any future changes in the company's ability to meet its interest obligations.