Signet Jewelers Ltd (SIG)

Signet Jewelers Ltd has consistently maintained a low level of leverage and debt over the five-year period analyzed. The Debt-to-assets ratio, representing the proportion of total debt to total assets, remained stable at 0.02 throughout the period. This indicates that only a small portion of the company's assets are financed through debt.

Similarly, the Debt-to-capital ratio and Debt-to-equity ratio, which measure the proportion of debt to total capital and shareholders' equity, respectively, also remained consistently low at 0.09-0.12 in 2021 and gradually decreased to 0.00 by 2024 and 2025. This signifies that Signet Jewelers relies significantly less on debt financing compared to its capital and equity. It shows a strong financial position and a reduced risk of financial distress due to high levels of debt.

Furthermore, the Financial leverage ratio, which indicates the extent to which the company relies on borrowed funds, decreased from 5.19 in 2021 to 3.09 in 2025. This trend reflects a reduction in financial risk and improved financial stability as Signet Jewelers Ltd has become less dependent on debt financing over the years.

Overall, the solvency ratios of Signet Jewelers Ltd suggest a conservative and prudent approach to managing its financial structure, with a low debt burden and a strong balance sheet position.

---

Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses.

For Signet Jewelers Ltd, the interest coverage ratio has shown varying trends over the years. As of January 30, 2021, the ratio was negative at -1.80, indicating that the company's earnings were insufficient to cover its interest expenses, which could raise concerns about its ability to meet debt obligations.

However, there has been a significant improvement in the interest coverage ratio since then. As of January 29, 2022, the ratio increased substantially to 53.33, indicating a much healthier position and a strong ability to cover interest payments comfortably.

In the following fiscal years, the interest coverage ratio remained favorable, albeit fluctuating. By January 28, 2023, the ratio stood at 34.42, demonstrating continued improvement in the company's ability to meet its interest obligations.

It is worth noting that the data for February 3, 2024, and February 1, 2025, is not available (denoted as "—"), which makes it difficult to assess the trend in the intervening years.

Overall, the trend in Signet Jewelers Ltd's interest coverage ratio shows a positive trajectory from a concerning negative level to a much-improved position. This indicates a better capacity to handle debt obligations and suggests a healthier financial position for the company.