US Foods Holding Corp (USFD)
Solvency ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 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 | 2.78 | 2.83 | 2.83 | 3.12 | 3.22 | 3.37 | 3.43 | 3.48 | 3.35 | 3.60 | 3.66 | 3.71 | 3.52 | 3.64 | 3.87 | 3.35 | 3.04 | 3.24 | 2.72 | 2.84 |
US Foods Holding Corp's solvency ratios provide insights into the company's ability to meet its long-term financial obligations. The debt-to-assets, debt-to-capital, and debt-to-equity ratios remained consistently at 0.00 across all the periods, indicating that the company did not have any debt in relation to its assets, capital, or equity during those periods.
However, the financial leverage ratio, which measures the proportion of the company's assets that are financed by debt compared to equity, fluctuated over time. The ratio ranged from 2.72 to 3.71 during the periods analyzed, with a general upward trend. This suggests that US Foods Holding Corp was increasingly relying on debt to finance its operations and investments, leading to higher financial leverage and potentially greater financial risk.
Overall, the trend in the financial leverage ratio indicates a shift towards more aggressive capital structure management by US Foods Holding Corp over the periods covered, which may have implications for the company's financial stability and risk profile.
Coverage ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.09 | 2.90 | 3.08 | 2.72 | 2.42 | 2.37 | 2.18 | 2.13 | 2.00 | 1.46 | 1.13 | 0.32 | -0.24 | 0.37 | 0.89 | 2.28 | 3.78 | 4.09 | 4.08 | 4.01 |
The interest coverage ratio measures the company's ability to meet its interest payment obligations with its operating income. A higher ratio indicates a stronger ability to cover interest expenses.
Looking at the trend in US Foods Holding Corp's interest coverage ratio, we can see that it has fluctuated over the past few years. In recent quarters, there has been an improvement in the interest coverage ratio, indicating that the company's operating income is more capable of covering its interest expenses.
Specifically, we observe that the interest coverage ratio has increased from 2.42 in Q4 2022 to 3.09 in Q4 2023, showing a positive trend. This improvement suggests that US Foods Holding Corp has enhanced its ability to service its debt obligations with its operational earnings.
Overall, the recent increase in the interest coverage ratio is a positive sign for the company's financial health and indicates a stronger ability to manage its debt and interest payments. It would be important to monitor future quarters to see if this trend continues or fluctuates.