Sonos Inc (SONO)
Solvency ratios
| Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 0.00 | 0.02 | 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 | 0.00 | 0.06 | 0.07 | 0.07 | 0.06 |
| 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 | 0.00 | 0.06 | 0.08 | 0.07 | 0.06 |
| Financial leverage ratio | 2.14 | 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 |
Sonos Inc has consistently maintained a low level of debt relative to its assets, capital, and equity over the periods analyzed, with debt-to-assets, debt-to-capital, and debt-to-equity ratios all consistently at 0.00. This indicates that the company relies little on debt financing to support its operations and growth.
The financial leverage ratio, which reflects the proportion of debt in the company's capital structure, has shown some fluctuations over the periods. On average, the financial leverage ratio is moderate, ranging from 1.73 to 2.74. This suggests that while Sonos Inc has some debt in its capital mix, it is relatively manageable compared to its equity.
Overall, Sonos Inc demonstrates a strong solvency position with a low reliance on debt, providing a stable financial structure that may reduce financial risk and enhance the company's ability to weather economic downturns or challenges.
Coverage ratios
| Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -77.15 | 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 |
The interest coverage ratio for Sonos Inc has shown significant fluctuations over the past few quarters. This ratio reflects the company's ability to meet interest payments on its outstanding debt obligations with its operating income.
In the most recent quarter ending September 30, 2024, the interest coverage ratio was -77.15, indicating that Sonos Inc's operating income was not sufficient to cover its interest expenses. This signifies a concerning situation where the company may face challenges in meeting its interest obligations.
However, looking at the trend over the previous quarters, there has been significant variability in the interest coverage ratio. The ratio has ranged from negative to very high positive values, showing inconsistent performance in managing interest payments relative to operating income.
It is important for investors and stakeholders to monitor this ratio closely as a low or negative interest coverage ratio can signal financial distress and potential liquidity issues for the company. Management should focus on improving operational efficiency and profitability to ensure sustainable coverage of interest expenses in the future.