Sonos Inc (SONO)
Solvency ratios
| 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 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.06 | 0.07 | 0.07 | 0.06 | 0.08 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.06 | 0.08 | 0.07 | 0.06 | 0.09 |
| Financial leverage ratio | 2.07 | 1.87 | 1.87 | 1.93 | 1.80 | 1.73 | 1.91 | 2.12 | 1.93 | 1.83 | 2.02 | 2.00 | 1.85 | 1.81 | 2.09 | 2.74 | 2.47 | 2.13 | 2.38 | 2.71 |
Sonos Inc has consistently maintained a very low level of debt in relation to its total assets, capital, and equity, with debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 across all periods analyzed. This indicates that the company has not relied heavily on debt to finance its operations and investments.
The financial leverage ratio, which measures the company's use of debt in relation to its equity, has shown some variability over the periods analyzed, ranging from 1.73 to 2.74. A higher financial leverage ratio indicates a higher level of financial risk due to increased reliance on debt financing. Sonos Inc's financial leverage ratio has fluctuated but generally remains at a moderate level, suggesting a balanced capital structure.
Overall, Sonos Inc demonstrates strong solvency ratios, indicating a prudent approach to managing its capital structure and financial risk. The company's low debt levels relative to its assets, capital, and equity suggest a stable financial position and a conservative debt management strategy.
Coverage ratios
| 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 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 6.13 | -41.73 | -20.18 | 6.97 | -39.70 | -22.08 | 81.50 | 125.46 | 272.43 | 434.02 | 346.93 | 266.59 | 230.63 | 103.72 | 38.65 | -12.50 | -37.11 | -10.73 | 4.15 | 0.55 |
The interest coverage ratio for Sonos Inc has fluctuated significantly over the past few quarters, ranging from negative values to very high positive numbers.
In the most recent quarter, ending June 30, 2024, the interest coverage ratio improved to 6.13, indicating that the company's operating income was able to cover its interest expenses more than six times. This suggests improved financial health and a reduced risk of default on interest payments.
However, the previous quarter, ending March 31, 2024, showed a concerning trend with a negative interest coverage ratio of -41.73, indicating that the company's operating income was insufficient to cover its interest expenses. This suggests financial distress and an increased risk of default on interest payments.
Looking at historical data, there have been quarters with exceptionally high interest coverage ratios, indicating strong operating performance and a robust ability to cover interest expenses. For example, in the quarter ending September 30, 2022, the interest coverage ratio was 125.46, reflecting a very healthy financial position.
On the other hand, there were quarters with negative interest coverage ratios, indicating financial difficulties in meeting interest obligations. For example, in the quarter ending March 31, 2020, the interest coverage ratio was -12.50, suggesting high financial risk.
Overall, the interest coverage ratio for Sonos Inc has been volatile, highlighting fluctuations in the company's ability to generate sufficient operating income to cover interest expenses. Monitoring this ratio is crucial for assessing the company's financial stability and ability to meet its debt obligations.