US Foods Holding Corp (USFD)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| 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 | 2.97 | 2.78 | 3.22 | 3.35 | 3.52 |
Based on the provided data, US Foods Holding Corp's solvency ratios indicate a very strong financial position in terms of its ability to meet its long-term obligations.
1. Debt-to-Assets Ratio: The company has consistently maintained a debt-to-assets ratio of 0.00 over the years, suggesting that it has no debt in relation to its total assets. This indicates a low financial risk and a high level of solvency.
2. Debt-to-Capital Ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also remained at 0.00 across the years. This ratio reflects the proportion of debt in the company's capital structure, and a ratio of 0.00 indicates no debt relative to the capital employed.
3. Debt-to-Equity Ratio: The debt-to-equity ratio has also remained at 0.00 consistently, showing that the company's equity is enough to finance its operations without relying on debt. This signifies a strong equity position and financial stability.
4. Financial Leverage Ratio: The financial leverage ratio has shown a decreasing trend from 3.52 in 2020 to 2.97 in 2024. A decreasing leverage ratio indicates that the company is relying less on debt to finance its operations, which can reduce financial risk and enhance solvency.
Overall, the solvency ratios of US Foods Holding Corp portray a financially sound and stable company with a strong ability to meet its long-term financial obligations without relying heavily on debt financing.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 122.11 | 3.09 | 2.42 | 2.00 | -0.24 |
The interest coverage ratio of US Foods Holding Corp has shown a significant improvement over the past few years. In December 2020, the ratio was negative at -0.24, indicating potential financial distress as the company's operating income was insufficient to cover its interest expenses. However, by December 2021, the interest coverage ratio improved to 2.00, showing that the company's operating income was able to cover its interest expenses twice over.
This positive trend continued into December 2022 and December 2023, with interest coverage ratios of 2.42 and 3.09 respectively. These ratios suggest a strengthened financial position, as the company's earnings were more than sufficient to cover its interest obligations.
Furthermore, by December 2024, the interest coverage ratio skyrocketed to 122.11, indicating a significant increase in the company's ability to cover its interest expenses. This exceptionally high ratio signifies robust profitability and financial stability for US Foods Holding Corp.
Overall, the trend of increasing interest coverage ratios reflects a positive financial trajectory for the company, demonstrating improved operational efficiency and capacity to service its debt obligations.