Tractor Supply Company (TSCO)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.32 | 4.27 | 4.24 | 4.50 | 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 |
Tractor Supply Company's solvency ratios demonstrate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity over the periods analyzed. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all remain at 0.00 throughout the years, indicating that the company is not relying heavily on debt to finance its operations.
The Financial leverage ratio, which measures the proportion of debt in the company's capital structure, fluctuates but generally stays within a range of 3.66 to 4.62. Although this ratio has increased slightly in recent periods, it still remains at a reasonably moderate level, suggesting that Tractor Supply Company is managing its debt effectively and not overly leveraged.
Overall, the solvency ratios suggest that Tractor Supply Company has a healthy balance sheet with a conservative approach to debt management, which enhances its financial stability and ability to meet its obligations in the long term.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 26.88 | 30.07 | 33.33 | 32.75 | 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 |
Tractor Supply Company's interest coverage ratio has shown a generally positive trend over the years based on the provided data. The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt, with a higher ratio indicating a better ability to cover interest payments.
From March 31, 2020, to June 30, 2022, the interest coverage ratio steadily increased from 37.69 to 50.63, indicating a strong ability to cover interest expenses. This suggests that the company's operating income was sufficient to cover its interest payments comfortably during this period.
However, from September 30, 2022, the interest coverage ratio started to decline, dropping to 26.88 by December 31, 2024. This decrease may indicate a potential strain on the company's ability to cover interest expenses with its operating income.
Overall, while the interest coverage ratio for Tractor Supply Company has fluctuated over time, it generally remained at levels that suggest the company has been able to meet its interest obligations adequately. Investors and creditors may want to monitor this ratio closely to assess the company's financial health and ability to manage its debt effectively.