Tractor Supply Company (TSCO)

Solvency ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Debt-to-assets ratio	0.19	0.19	0.19	0.18	0.14	0.14	0.13	0.13	0.13	0.13	0.13	0.13	0.14	0.08	0.08	0.16	0.07	0.11	0.09	0.11
Debt-to-capital ratio	0.45	0.45	0.45	0.46	0.36	0.36	0.34	0.36	0.33	0.33	0.33	0.35	0.34	0.22	0.24	0.42	0.19	0.29	0.23	0.29
Debt-to-equity ratio	0.80	0.82	0.83	0.84	0.57	0.56	0.52	0.55	0.49	0.49	0.50	0.53	0.51	0.28	0.32	0.73	0.23	0.41	0.30	0.41
Financial leverage ratio	4.27	4.36	4.33	4.62	4.16	4.08	4.11	4.29	3.88	3.83	3.88	3.97	3.66	3.66	3.90	4.43	3.38	3.64	3.44	3.66

Tractor Supply Company's solvency ratios indicate the company's ability to meet its long-term obligations.

- The debt-to-assets ratio has been relatively stable around 0.13 to 0.19, indicating that a moderate portion of the company's assets is financed by debt.

- The debt-to-capital ratio has also remained consistent around 0.33 to 0.46, suggesting that a significant portion of the company's capital structure is composed of debt.

- The debt-to-equity ratio has shown some variability, ranging from 0.49 to 0.84. This ratio indicates the proportion of the company's assets financed by shareholders' equity compared to debt.

- The financial leverage ratio has fluctuated between 3.38 to 4.62, reflecting the company's level of financial risk and how much debt is used to finance its assets.

Overall, Tractor Supply Company maintains a reasonable level of debt relative to its assets and capital, with fluctuations in leverage ratios indicating changing financial risk levels over the periods analyzed.

Coverage ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Interest coverage	31.80	33.57	35.42	39.60	46.84	50.82	50.63	49.91	49.11	42.56	39.47	36.02	34.64	39.28	39.29	37.69	37.46	37.69	38.11	37.76

Tractor Supply Company has consistently shown strong interest coverage ratios over the past few quarters, indicating its ability to meet its interest obligations comfortably. The interest coverage ratio has consistently remained well above 30, with the latest ratio being 31.80 as of December 31, 2023. This trend demonstrates the company's robust earnings relative to its interest expenses, suggesting a low risk of default due to an inability to make interest payments.

The increasing trend in the interest coverage ratio over the periods analyzed highlights Tractor Supply Company's improving financial health and operational efficiency. Investors and creditors may view the company favorably due to its strong interest coverage ratios, indicating a lower credit risk and enhanced financial stability. Overall, the consistently high interest coverage ratios reflect Tractor Supply Company's sound financial management and ability to generate sufficient earnings to cover its interest expenses.