Urban Outfitters Inc (URBN)

The solvency ratios of Urban Outfitters Inc indicate a strong financial position with minimal debt levels relative to the company's assets, capital, and equity.

The Debt-to-assets ratio has consistently been at 0.00 from January 31, 2021, to January 31, 2025, reflecting that the company operates with no long-term debt relative to its total assets. Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also maintained a stable 0.00 ratio over the same period, suggesting that Urban Outfitters Inc relies very little on debt financing compared to its total capital and equity.

Furthermore, the Financial leverage ratio has shown a decreasing trend from 2.40 on January 31, 2021, to 1.83 on January 31, 2025. This indicates that the company has been effectively reducing its financial leverage over the years, which implies lower reliance on debt to fund its operations.

Overall, the solvency ratios highlight Urban Outfitters Inc's ability to meet its long-term financial obligations comfortably and operate with a conservative capital structure, portraying a stable and secure financial standing.

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Coverage ratios

Based on the data provided, the interest coverage ratio of Urban Outfitters Inc has shown significant fluctuations over the years.

- As of January 31, 2021, the interest coverage ratio was 2.03, indicating that the company's operating income was just sufficient to cover its interest expense. This could be a cause for concern as it suggests a limited buffer against potential financial distress.

- By January 31, 2022, the interest coverage ratio surged to 367.51, a substantial improvement compared to the previous year. This exceptionally high ratio indicates a robust ability to cover interest payments many times over, possibly reflecting a significant increase in operating income or a decrease in interest expenses.

- However, in the following years, the interest coverage ratio decreased but remained at healthy levels. By January 31, 2023, the ratio stood at 169.27, followed by a further decline to 50.81 on January 31, 2024, and a subsequent increase to 83.41 by January 31, 2025. While these fluctuations may indicate changes in the company's financial performance or debt structure, the ratios remain relatively strong overall.

In conclusion, Urban Outfitters Inc has experienced varying levels of interest coverage over the years, with significant improvements followed by some fluctuations. Monitoring this ratio is crucial for assessing the company's ability to meet its interest obligations and manage its financial health effectively.