Victoria's Secret & Co (VSCO)
Solvency ratios
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.24 | 0.33 | 0.28 | 0.29 | 0.27 | 0.30 | 0.24 | 0.24 | 0.23 | 0.22 | 0.15 |
| Debt-to-capital ratio | 0.73 | 0.87 | 0.82 | 0.83 | 0.77 | 0.84 | 0.80 | 0.81 | 0.79 | 0.80 | 0.44 |
| Debt-to-equity ratio | 2.69 | 6.95 | 4.55 | 4.80 | 3.32 | 5.29 | 3.96 | 4.30 | 3.81 | 3.88 | 0.78 |
| Financial leverage ratio | 11.03 | 21.30 | 16.22 | 16.62 | 12.30 | 17.63 | 16.49 | 17.91 | 16.90 | 17.34 | 5.27 |
The solvency ratios of Victoria's Secret & Co provide insights into its financial stability and ability to meet its long-term obligations.
The debt-to-assets ratio shows the proportion of the company's assets financed by debt. The trend indicates a relatively stable and conservative approach to debt financing, with the ratio ranging from 0.22 to 0.33 over the past several quarters.
The debt-to-capital ratio reveals the extent of the company's capital structure provided by debt. Victoria's Secret & Co's ratio fluctuates between 0.73 and 0.87, indicating that a significant portion of its capital is funded through debt, but the company has been managing this within a certain range.
The debt-to-equity ratio demonstrates the level of financial leverage used by the company. The trend shows fluctuation between 2.69 and 6.95, suggesting varying levels of reliance on debt to fund operations. The ratios of 4.55 and above indicate higher financial risk due to higher debt levels compared to equity.
Finally, the financial leverage ratio reflects the company's overall financial risk and shows how much the company relies on debt to finance its operations. The ratio ranges widely from 5.27 to 21.30, indicating fluctuations in the company's leverage levels and financial risk over time.
Overall, while Victoria's Secret & Co has managed its debt levels within certain ranges, the fluctuations in some ratios suggest potential changes in the company's solvency and financial risk levels that should be closely monitored.
Coverage ratios
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | |
|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.42 | 2.53 | 4.30 | 6.04 | 8.25 | 11.27 | 13.27 | 19.47 |
The interest coverage ratio of Victoria's Secret & Co has shown a generally upward trend over the past several periods, indicating an improving ability to cover its interest expenses with operating income. The company's interest coverage ratio increased from 2.42 in February 3, 2024, to 19.47 in April 30, 2022, which signifies a significant improvement in its financial health and ability to meet its debt obligations.
The consistent growth in the interest coverage ratio suggests that Victoria's Secret & Co has been effectively managing its interest expenses relative to its operating income. This upward trajectory indicates a strengthening financial position and enhanced capacity to fulfill its debt commitments. Overall, the increasing trend in the interest coverage ratio reflects favorable financial performance and suggests improved financial stability for Victoria's Secret & Co.