SpartanNash Co (SPTN)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.01 | 0.01 | 0.01 | 0.01 |
| Debt-to-equity ratio | 0.00 | 0.01 | 0.01 | 0.01 | 0.01 |
| Financial leverage ratio | 3.03 | 3.01 | 2.82 | 3.10 | 3.31 |
Solvency ratios are crucial indicators of a company's ability to meet its long-term financial obligations. Looking at SpartanNash Co's solvency ratios from 2019 to 2023, we observe a stable trend in terms of debt levels relative to its assets, capital, and equity.
The debt-to-assets ratio has consistently remained at 0.00 over the past five years, indicating that the company's total debt is effectively negligible compared to its total assets. This suggests that SpartanNash Co relies more on equity financing rather than debt to fund its operations and investments.
Similarly, the debt-to-capital and debt-to-equity ratios have also shown stability at low levels of 0.01 over the same period. These ratios confirm that the company maintains a conservative capital structure with minimal reliance on debt financing.
In contrast, the financial leverage ratio has fluctuated slightly, ranging from 2.82 to 3.31, but generally remained within a narrow band. This ratio indicates the proportion of the company's assets that are financed by debt rather than equity. Despite the fluctuations, the financial leverage ratio suggests that SpartanNash Co has maintained a relatively stable level of financial leverage over the years.
Overall, SpartanNash Co's solvency ratios depict a financially sound and conservative capital structure with minimal debt exposure. The consistent low ratios indicate a prudent approach to managing long-term financial obligations, which bodes well for the company's financial stability and ability to weather economic challenges.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 2.76 | 3.06 | 8.12 | 5.63 | 1.10 |
SpartanNash Co's interest coverage ratio has shown variability over the past five years. In 2023, the interest coverage ratio stands at 2.76, indicating that the company generated 2.76 times the earnings needed to cover its interest expenses. This represents a slight decrease from the ratio of 3.06 in 2022. Despite the decrease, the company's ability to meet its interest obligations remains relatively stable.
Comparing to the prior years, SpartanNash Co's interest coverage was notably higher in 2021 at 8.12, demonstrating a strong capacity to cover interest payments with operating income. This was a significant improvement from 2020 when the ratio was 5.63. However, in 2019, the interest coverage ratio was substantially lower at 1.10, indicating a potential concern as the company's earnings were only just enough to cover its interest expenses.
Overall, while SpartanNash Co's interest coverage has fluctuated over the years, the current ratio of 2.76 suggests a moderate ability to meet interest obligations, with room for improvement to enhance the company's financial stability and creditworthiness.