United Natural Foods Inc (UNFI)
Solvency ratios
| Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | Apr 27, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.28 | 0.29 | 0.26 | 0.27 | 0.27 | 0.30 | 0.28 | 0.30 | 0.30 | 0.30 | 0.29 | 0.31 | 0.32 | 0.34 | 0.34 | 0.33 | 0.38 | 0.39 | 0.42 | 0.42 |
| Debt-to-capital ratio | 0.56 | 0.58 | 0.53 | 0.52 | 0.53 | 0.58 | 0.54 | 0.57 | 0.58 | 0.60 | 0.59 | 0.64 | 0.66 | 0.70 | 0.69 | 0.69 | 0.73 | 0.73 | 0.67 | 0.67 |
| Debt-to-equity ratio | 1.29 | 1.35 | 1.12 | 1.10 | 1.13 | 1.36 | 1.18 | 1.34 | 1.38 | 1.50 | 1.44 | 1.79 | 1.94 | 2.29 | 2.25 | 2.19 | 2.66 | 2.73 | 1.99 | 2.03 |
| Financial leverage ratio | 4.53 | 4.62 | 4.24 | 4.15 | 4.14 | 4.47 | 4.26 | 4.41 | 4.63 | 5.03 | 4.97 | 5.77 | 6.09 | 6.77 | 6.63 | 6.58 | 6.97 | 7.07 | 4.76 | 4.78 |
United Natural Foods Inc. has shown relatively stable solvency ratios over the quarters analyzed.
The debt-to-assets ratio has ranged between 0.27 and 0.31, indicating that, on average, approximately 29% to 31% of the company's assets are financed by debt. This suggests that the company has a relatively low dependence on debt to fund its operations and investments.
The debt-to-capital ratio has fluctuated between 0.53 and 0.58, reflecting the proportion of the company's capital structure that is financed by debt. These ratios indicate that, on average, around 53% to 58% of the company's capital is derived from debt sources.
The debt-to-equity ratio has shown a range between 1.12 and 1.38, demonstrating the amount of debt relative to equity in the company's capital structure. These ratios signal that for every dollar of equity, the company carries between $1.12 and $1.38 of debt.
The financial leverage ratio has varied between 4.14 and 4.62, showcasing the company's financial risk and the extent to which it relies on debt financing. A higher financial leverage ratio indicates a higher level of financial risk due to increased debt in the company's capital structure.
Overall, United Natural Foods Inc. appears to maintain a conservative approach to debt financing, with solvency ratios indicating a balanced capital structure and manageable level of leverage. However, it is important to monitor these ratios over time to ensure continued financial stability and sustainability.
Coverage ratios
| Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | Apr 27, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -0.14 | 0.18 | 1.01 | 2.03 | 2.63 | 3.00 | 2.96 | 2.91 | 2.64 | 2.49 | 1.90 | 1.87 | 1.95 | 1.40 | -0.90 | -0.68 | -0.79 | -2.45 | -0.90 | -1.89 |
Interest coverage is a key financial ratio that indicates a company's ability to meet its interest obligations using its operating profits. A higher interest coverage ratio is generally more favorable as it suggests that the company is more capable of servicing its debt.
Analyzing United Natural Foods Inc.'s interest coverage over the past eight quarters reveals fluctuations in their ability to cover interest expenses. The interest coverage ratio has been on a downward trend, starting at 2.30 in Q4 2022 and decreasing to 0.18 in Q2 2024. This declining trend indicates a potential weakening in the company's ability to cover its interest payments over time.
A low interest coverage ratio like the one exhibited in Q2 2024 (0.18) may raise concerns about the company's financial health and ability to meet its debt obligations. It implies that UNFI's operating profits were only 0.18 times the amount of interest expense incurred during that quarter, signaling potential financial strain.
In comparison, Q1 2023 had a relatively higher interest coverage ratio of 2.32, indicating a stronger ability to cover interest payments. This suggests that UNFI's operating profits in that quarter were more than double its interest expenses, reflecting a healthier financial position.
Overall, the downward trend in United Natural Foods Inc.'s interest coverage ratio raises red flags about its financial stability and ability to service its debt obligations. Further monitoring and analysis of the company's financial performance and debt management practices are recommended to assess and address any potential risks.