SpartanNash Co (SPTN)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.50 | 3.03 | 3.01 | 2.82 | 3.10 |
The solvency ratios of SpartanNash Co indicate a strong financial position characterized by low levels of debt relative to assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have consistently remained at 0.00 from December 31, 2020, to December 31, 2024. This signifies that the company's debt obligations are minimal in relation to its total assets, capital, and shareholder equity.
Furthermore, the Financial leverage ratio has shown some variability over the same period, ranging from 2.82 to 3.50. Despite this fluctuation, the ratio remains above 3.00 for most years, indicating that SpartanNash Co relies relatively more on debt financing to support its operations. However, this level of leverage seems manageable and may reflect a strategic use of debt to enhance returns for shareholders.
Overall, SpartanNash Co's solvency ratios suggest a stable and well-managed financial position with low debt levels and a reasonable degree of leverage to support its business activities.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | 2.75 | -1.02 | 1.69 | 2.10 |
The interest coverage ratio for SpartanNash Co over the past five years shows a mixed performance. In 2020, the company had an interest coverage ratio of 2.10, indicating that SpartanNash was able to cover its interest expenses comfortably with its earnings. However, there was a decline in 2021 to 1.69, signaling a slight weakening in the company's ability to cover its interest obligations.
The year 2022 saw a significant decrease in the interest coverage ratio to -1.02, which suggests that SpartanNash may have faced challenges meeting its interest payments with its operating income. This negative ratio raises concerns about the company's financial health and ability to manage its debt effectively.
Fortunately, there was a notable improvement in 2023, with the interest coverage ratio rising to 2.75. This indicates that SpartanNash was in a better position to cover its interest expenses with its earnings that year. However, in 2024, the interest coverage ratio dropped to 0.00, which could be a cause for alarm as it suggests that the company may not have generated enough operating income to cover its interest costs.
Overall, SpartanNash Co's interest coverage ratio has shown volatility over the years, with both positive and negative trends. It is crucial for the company to closely monitor and manage its interest obligations to maintain financial stability and sustainability in the long term.