US Foods Holding Corp (USFD)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.78 | 3.22 | 3.35 | 3.52 | 3.04 |
The debt-to-assets, debt-to-capital, and debt-to-equity ratios for US Foods Holding Corp have consistently been reported as 0.00 for the past five years, indicating that the company has not relied on debt to finance its operations and investments during this period. On the other hand, the financial leverage ratio has shown fluctuations over the same period, with a decrease from 3.52 in 2020 to 2.78 in 2023.
The financial leverage ratio of 2.78 in 2023 suggests that the company finances its assets using equity primarily, with a relatively lower reliance on debt compared to the prior years. This indicates a lower level of financial risk for the company as lower leverage typically means less exposure to interest rate risks and financial distress.
Overall, based on the solvency ratios analyzed, US Foods Holding Corp appears to have maintained a conservative capital structure with minimal debt usage, and a decreasing trend in financial leverage implies improved financial stability over the years.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 3.09 | 2.42 | 2.00 | -0.24 | 3.78 |
The interest coverage ratio for US Foods Holding Corp has varied over the past five years. In 2023, the company's interest coverage ratio improved to 3.09, indicating that US Foods Holding Corp generated 3.09 times the operating income to cover its interest expenses. This improvement from the previous year's ratio of 2.42 suggests enhanced ability to meet interest obligations.
Looking further back, in 2021 and 2020, the interest coverage ratios were 2.00 and -0.24 respectively. The negative ratio in 2020 indicates that the company's operating income was insufficient to cover its interest expenses during that period. However, in 2019, the interest coverage ratio was 3.78, showing a relatively stronger ability to cover interest payments compared to the more recent years.
Overall, while there have been fluctuations in the interest coverage ratio of US Foods Holding Corp, the recent improvement in 2023 is a positive sign of the company's ability to meet its interest obligations through operating income. It is essential for stakeholders to monitor this ratio to assess the company's financial health and ability to fulfill its debt obligations.