Signet Jewelers Ltd (SIG)
Solvency ratios
| 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 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.08 | 0.13 | 0.11 | 0.10 |
| Debt-to-capital ratio | 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 | 0.30 | 0.43 | 0.37 | 0.35 |
| Debt-to-equity ratio | 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 | 0.42 | 0.75 | 0.58 | 0.55 |
| Financial leverage ratio | 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 | 5.15 | 5.81 | 5.48 | 5.33 |
Signet Jewelers Ltd's solvency ratios show the company's ability to meet its long-term debt obligations. Looking at the trend over time, we can see that the debt-to-assets ratio has been relatively stable at around 0.02 in recent periods, indicating that the company has low levels of debt compared to its total assets. However, there was a significant increase in this ratio in the most recent period.
The debt-to-capital ratio and debt-to-equity ratio also show a similar trend, with low levels of debt compared to the company's capital and equity in previous periods, but a noticeable uptick in the most recent period. This increase suggests that Signet Jewelers has taken on more debt relative to its capital and equity, which could potentially indicate a higher level of financial risk.
The financial leverage ratio has fluctuated over time, but it generally shows an increasing trend, reaching a peak in the most recent period. This ratio indicates the extent to which the company is using debt to finance its operations, and a higher ratio could imply higher financial risk and lower financial flexibility.
In summary, while Signet Jewelers has historically maintained low levels of debt relative to its assets, capital, and equity, the recent increase in these solvency ratios warrants further monitoring as it may signify a shift towards a higher debt burden and increased financial risk for the company.
Coverage ratios
| 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 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 441.62 | 263.70 | 179.67 | 34.42 | 31.26 | 33.97 | 34.38 | 53.33 | 42.11 | 30.49 | 14.26 | -1.80 | -4.05 | -6.33 | -4.19 | 4.41 | -3.85 | -4.24 | -5.41 |
Signet Jewelers Ltd's interest coverage ratio shows the company's ability to meet its interest obligations on its outstanding debt. The interest coverage ratio is calculated by dividing the company's earnings before interest and taxes (EBIT) by its interest expense.
From the data provided, we can see fluctuations in Signet Jewelers' interest coverage ratio over the past few quarters. The ratio was very high in the October 2023 quarter at 441.62, indicating a significant ability to cover its interest expenses. However, it declined in subsequent quarters, with notable decreases in the January 2023 and April 2023 quarters.
The interest coverage ratio falling below 1 in some quarters, such as January 2021 and October 2020, is a concerning sign as it indicates that Signet Jewelers' EBIT was not sufficient to cover its interest expenses during those periods. This could suggest financial distress or an increased risk of default on debt obligations.
Overall, a higher interest coverage ratio is considered more favorable as it indicates a company's ability to meet its interest payments comfortably. Investors and creditors often closely monitor changes in the interest coverage ratio, as it can reflect the company's financial health and stability in meeting debt obligations.