Urban Outfitters Inc (URBN)
Solvency ratios
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 1.95 | 2.01 | 2.02 | 2.05 | 2.05 | 2.14 | 2.14 | 2.15 | 2.17 | 2.23 | 2.24 | 2.33 | 2.40 | 2.47 | 2.54 | 2.59 | 2.28 | 2.32 | 2.31 | 2.25 |
The solvency ratios of Urban Outfitters Inc, as indicated by the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio, show consistently low values of 0.00 across the provided time periods. This suggests that the company has minimal debt in relation to its assets, capital, and equity, indicating a strong financial position in terms of solvency.
However, the financial leverage ratio shows some variability over time, ranging from 1.95 to 2.59. A higher financial leverage ratio implies higher levels of debt relative to equity, indicating increased financial risk. Despite fluctuations, the financial leverage ratio generally remains above 2, reflecting a comparatively higher proportion of debt in the company's capital structure.
Overall, while the debt-related solvency ratios indicate a strong financial position with minimal debt burden, the increasing trend in the financial leverage ratio suggests a rising dependence on debt financing, which may warrant close monitoring to ensure sustainable financial health.
Coverage ratios
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 261.15 | — | — | — | 172.34 | 502.45 | 241.01 | 267.96 | 370.08 | 54.73 | 67.46 | 63.73 | 1.17 | 4.88 | -9.99 | -4.58 | 192.95 | 440.00 | 377.32 | 297.28 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a better ability to cover interest expenses.
Analyzing Urban Outfitters Inc's interest coverage ratios over the past two years shows significant fluctuations. The interest coverage ratio was extremely strong in the first half of 2022, peaking at 502.45 in October 2022. This suggests that the company had a significant buffer to meet its interest obligations during this period.
However, the interest coverage ratio dropped sharply in the subsequent quarters, hitting negative values in the middle of 2020. This indicates that Urban Outfitters Inc's earnings were not sufficient to cover its interest costs during this time, potentially signaling financial distress or challenges in generating profits.
The interest coverage ratio improved significantly in the most recent quarters, reaching 261.15 in January 2024, which is a positive sign of the company's ability to cover its interest expenses with its earnings.
Overall, Urban Outfitters Inc's interest coverage ratio has shown volatility over the past two years, with periods of strong coverage alternating with periods of weakness. Investors and analysts should closely monitor this ratio to assess the company's financial health and its ability to manage its debt obligations effectively.