Signet Jewelers Ltd (SIG)
Solvency ratios
| Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.04 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.16 | 0.20 | 0.19 |
| Debt-to-capital ratio | 0.00 | 0.12 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.09 | 0.09 | 0.09 | 0.10 | 0.11 | 0.53 | 0.59 | 0.58 |
| Debt-to-equity ratio | 0.00 | 0.14 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.09 | 0.09 | 0.11 | 0.11 | 0.12 | 0.09 | 0.10 | 0.09 | 0.11 | 0.12 | 1.13 | 1.46 | 1.36 |
| Financial leverage ratio | 3.09 | 3.16 | 2.93 | 2.95 | 3.14 | 3.86 | 3.77 | 3.92 | 4.19 | 4.67 | 4.51 | 5.00 | 4.20 | 4.16 | 4.06 | 4.68 | 5.19 | 7.13 | 7.18 | 6.99 |
Signet Jewelers Ltd's solvency ratios indicate a strong financial position over the evaluation period. The Debt-to-assets ratio steadily decreased from 0.19 in May 2020 to 0.00 by July 2023 and remained low thereafter, reflecting the company's ability to cover its debt obligations with its assets.
Similarly, the Debt-to-capital ratio showed a downward trend, decreasing from 0.58 in May 2020 to 0.00 by July 2023, before experiencing a slight increase in November 2024. This ratio suggests that Signet Jewelers Ltd relied less on debt financing and maintained a strong capital structure.
The Debt-to-equity ratio followed a similar pattern, declining from 1.36 in May 2020 to 0.00 by July 2023, indicating a reduction in financial leverage and a healthier balance between debt and equity in the company's capital structure.
The Financial leverage ratio also decreased consistently from 6.99 in May 2020 to 2.93 by August 2024, before slightly increasing in November 2024. This ratio underscores the company's ability to generate earnings to cover interest expenses and meet its financial obligations.
Overall, Signet Jewelers Ltd's solvency ratios demonstrate a robust financial position, with a decreasing reliance on debt financing and a strong ability to meet debt obligations with available assets.
Coverage ratios
| Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | — | 145.58 | 129.45 | 64.74 | 49.07 | 47.76 | 49.00 | 34.42 | 31.26 | 33.97 | 34.38 | 53.33 | 42.11 | 30.49 | 14.26 | -1.80 | -4.05 | -6.33 | -4.19 |
Signet Jewelers Ltd's interest coverage ratio has shown significant fluctuations over the past few years. The interest coverage ratio is a measure of a company's ability to pay interest expenses on its debt. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses.
From May 2, 2020, to January 30, 2021, the company had negative interest coverage ratios, indicating a struggling financial position and an inability to cover its interest costs. However, from May 1, 2021, onwards, there was a notable improvement in the interest coverage ratio, with a sharp increase to 14.26 and further increases in the subsequent periods.
The highest interest coverage ratios were observed in the February 1, 2025, and August 3, 2024, periods, reaching 145.58 and 129.45, respectively. These high ratios suggest that Signet Jewelers Ltd's operating income was significantly more than sufficient to cover its interest expenses during those periods.
Overall, the trend indicates that the company has made significant improvements in its ability to meet its interest obligations, moving from negative ratios to strong positive ratios. This improvement suggests better financial health and lower financial risk for Signet Jewelers Ltd.