Thor Industries Inc (THO)
Solvency ratios
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.16 | 0.17 | 0.19 | 0.18 | 0.18 | 0.22 | 0.24 | 0.24 | 0.24 | 0.26 | 0.28 | 0.29 | 0.24 | 0.26 | 0.29 | 0.27 | 0.29 | 0.35 | 0.31 | 0.32 |
| Debt-to-capital ratio | 0.21 | 0.23 | 0.26 | 0.25 | 0.25 | 0.30 | 0.32 | 0.32 | 0.33 | 0.37 | 0.40 | 0.42 | 0.35 | 0.39 | 0.41 | 0.40 | 0.42 | 0.49 | 0.45 | 0.46 |
| Debt-to-equity ratio | 0.27 | 0.30 | 0.35 | 0.32 | 0.32 | 0.42 | 0.47 | 0.47 | 0.49 | 0.58 | 0.67 | 0.72 | 0.55 | 0.63 | 0.71 | 0.66 | 0.71 | 0.94 | 0.83 | 0.84 |
| Financial leverage ratio | 1.73 | 1.80 | 1.84 | 1.83 | 1.83 | 1.94 | 1.93 | 2.00 | 2.06 | 2.25 | 2.38 | 2.50 | 2.28 | 2.46 | 2.48 | 2.45 | 2.49 | 2.69 | 2.66 | 2.65 |
The solvency ratios of Thor Industries Inc indicate the firm's ability to meet its long-term financial obligations and manage its debt levels.
Based on the trend analysis of the debt-to-assets ratio, there's been fluctuation over the periods, with the ratio ranged from 0.16 to 0.35. The decreasing trend from 0.35 to 0.16 indicates that the company has been able to lower its reliance on debt to finance its assets.
The debt-to-capital ratio demonstrates the proportion of debt in the company's capital structure. The ratio has also shown variability over time, ranging from 0.21 to 0.49. The decreasing trend from 0.49 to 0.21 signals a positive shift towards a lower reliance on debt financing.
The debt-to-equity ratio indicates the extent to which the company is using debt financing compared to equity. The ratio fluctuated between 0.27 and 0.94, suggesting significant variability in the company's capital structure over time. The declining trend from 0.94 to 0.27 demonstrates a reduction in the company's reliance on debt relative to equity.
The financial leverage ratio reflects the company's financial risk and shows how much of the company's assets are financed by debt. The ratio ranged from 1.73 to 2.69, indicating fluctuations in the level of financial leverage utilized by the company. The decreasing trend from 2.69 to 1.73 suggests a gradual improvement in the company's financial leverage position.
Overall, the trend analysis of Thor Industries Inc solvency ratios over the periods indicates a gradual reduction in the company's reliance on debt financing and improved financial stability.
Coverage ratios
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.70 | 5.41 | 5.54 | 5.02 | 6.12 | 8.74 | 12.39 | 15.83 | 17.20 | 17.41 | 14.15 | 12.19 | 10.02 | 7.88 | 5.77 | 4.39 | 3.56 | 3.09 | 3.11 | 3.33 |
Thor Industries Inc's interest coverage ratio has displayed fluctuations over the past 20 periods, ranging from a low of 3.09 to a high of 17.41. The ratio measures the company's ability to meet its interest payment obligations with its earnings before interest and taxes (EBIT).
Overall, Thor Industries Inc's interest coverage ratio has generally remained above 5 in most periods, indicating a healthy ability to cover interest payments with earnings.
The company experienced a significant decline in interest coverage in the most recent period compared to the previous quarter, but it is important to note that the ratio still remains above 5. This may warrant further investigation to understand the factors leading to the decline.
Additionally, Thor Industries Inc's interest coverage ratio has shown an increasing trend from Oct 2019 to Jan 2022, peaking at 17.41 in Jul 2022, indicating a strong ability to service its debt obligations with operating earnings during that period.
Investors and creditors typically view a higher interest coverage ratio as a positive indicator of a company's financial health and ability to manage debt effectively. Overall, Thor Industries Inc's interest coverage ratio analysis suggests a generally stable financial position with fluctuations that may require closer monitoring for any potential impact on the company's debt servicing capacity.