United Natural Foods Inc (UNFI)

United Natural Foods Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has remained relatively stable over the past five years, ranging from 0.26 to 0.34, with a current ratio of 0.28 as of August 3, 2024. This suggests that around 28% of the company's assets are financed by debt.

The debt-to-capital ratio has also shown consistency, with a current ratio of 0.56 indicating that approximately 56% of the company's capital structure is funded by debt. This ratio has remained within the range of 0.53 to 0.69 over the past five years.

The debt-to-equity ratio has fluctuated, ranging from 1.12 to 2.25 over the same period. As of August 3, 2024, the ratio stands at 1.27, meaning that for every dollar of equity, the company has $1.27 in debt. This ratio provides insights into the company's reliance on debt financing compared to equity.

The financial leverage ratio, which evaluates the company's total assets in relation to shareholders' equity, has also varied over the years. The current ratio of 4.59 indicates that the company has $4.59 in assets for every dollar of equity. This ratio has decreased from 6.63 in 2020, suggesting a reduction in financial leverage.

Overall, United Natural Foods Inc's solvency ratios display a moderate level of leverage and indicate a relatively stable financial position in terms of debt management and capital structure over the past five years.

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Coverage ratios

The interest coverage ratio for United Natural Foods Inc has been fluctuating over the past five years. In 2024, the company's interest coverage ratio was 0.73, indicating that its operating income was insufficient to cover its interest expenses. This may raise concerns about the company's ability to meet its debt obligations.

In 2023, the interest coverage ratio improved to 1.01, although it still indicates a relatively low level of coverage. The ratio increased significantly in 2022 to 2.96, suggesting that the company's operating income was nearly three times its interest expenses, which is a positive sign of financial health.

In 2021, the interest coverage ratio decreased to 1.90, indicating a slight deterioration in the company's ability to cover its interest expenses. In 2020, the ratio was negative at -0.90, implying that the company's operating income was not sufficient to cover its interest expenses, which is a concerning indicator of financial distress.

Overall, the trend in United Natural Foods Inc's interest coverage ratio shows some variability, with the company experiencing both improvements and declines in its ability to cover interest expenses over the past five years. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's financial risk and ability to meet its debt obligations.