Tractor Supply Company (TSCO)
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 | 4.32 | 4.27 | 4.16 | 3.88 | 3.66 |
Tractor Supply Company's solvency ratios indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00 from December 31, 2020, to December 31, 2024, which suggests that the company has no significant debt obligations in relation to its total assets, capital structure, or shareholders' equity.
However, the financial leverage ratio has shown a slight increasing trend over the same period, rising from 3.66 in 2020 to 4.32 in 2024. This indicates that while the company has a low level of debt, its leverage has been gradually increasing, which may imply a higher reliance on debt financing to support its operations and growth.
Overall, Tractor Supply Company's solvency ratios reflect a stable and healthy financial position with minimal debt burden and a moderate level of financial leverage that warrants monitoring to ensure continued solvency and financial stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 26.88 | 31.80 | 46.84 | 49.11 | 34.64 |
The interest coverage ratio for Tractor Supply Company has shown a generally positive trend over the past five years. In December 31, 2020, the interest coverage ratio was 34.64, indicating that the company's operating income was able to cover its interest expenses approximately 34 times. This ratio improved to 49.11 in December 31, 2021, and further to 46.84 in December 31, 2022, reflecting a stronger ability to meet its interest obligations.
However, there was a decrease in the interest coverage ratio to 31.80 in December 31, 2023, which might indicate a slight weakening in the company's ability to cover its interest payments. This trend continued as the interest coverage ratio further decreased to 26.88 in December 31, 2024, which could raise concerns about the company's ability to fulfill its interest obligations with its operating income.
Overall, while the interest coverage ratio for Tractor Supply Company has displayed some fluctuations in recent years, it is essential for investors and analysts to monitor this metric closely to assess the company's financial health and debt repayment capacity.