Tractor Supply Company (TSCO)

Tractor Supply Company's solvency ratios indicate the company's ability to meet its financial obligations and manage its debt levels over the past five years. The Debt-to-assets ratio has shown an increasing trend, moving from 0.07 in 2019 to 0.19 in 2023, indicating higher reliance on debt to finance its assets. This suggests that a larger portion of the company's assets are financed by debt.

The Debt-to-capital ratio has also been increasing, rising from 0.19 in 2019 to 0.45 in 2023. This ratio reflects the proportion of the company's capital that is financed through debt, and the increasing trend suggests a higher level of debt in Tractor Supply's capital structure.

The Debt-to-equity ratio has shown a similar trend, increasing from 0.23 in 2019 to 0.80 in 2023. This indicates that the company's equity is being increasingly supplemented by debt, which may pose higher financial risk in terms of debt repayment obligations.

Lastly, the Financial leverage ratio has been trending upwards, from 3.38 in 2019 to 4.27 in 2023. This ratio measures the extent to which a company uses debt to finance its assets, and the increasing trend indicates a higher level of financial risk associated with the company's capital structure.

Overall, Tractor Supply Company's solvency ratios reflect a growing reliance on debt to finance its operations and assets, which may increase the company's financial risk and impact its ability to withstand economic downturns or changes in interest rates. Investors and stakeholders should closely monitor these solvency ratios to assess the company's financial health and stability.

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Coverage ratios

Tractor Supply Company's interest coverage ratio has shown a favorable and consistent trend over the past five years, reflecting the company's ability to cover its interest expenses with its earnings before interest and taxes. The ratios of 31.80 in 2023, 46.84 in 2022, 49.11 in 2021, 34.64 in 2020, and 37.46 in 2019 indicate a strong financial position and a healthy ability to meet its interest obligations. This consistent and high level of interest coverage suggests that Tractor Supply Company has a strong financial performance and profitability, providing a buffer against potential fluctuations in earnings. It also demonstrates the company's capacity to efficiently manage its debt and indicates a lower risk of default. Overall, the trend in Tractor Supply Company's interest coverage ratio shows financial stability and sound management of debt obligations.