Victoria's Secret & Co (VSCO)
Solvency ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.24 | 0.00 | 0.00 | 0.33 | 0.00 | 0.28 | 0.00 | 0.29 | 0.00 | 0.27 | 0.00 | 0.30 | 0.00 | 0.24 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.73 | 0.00 | 0.00 | 0.87 | 0.00 | 0.82 | 0.00 | 0.83 | 0.00 | 0.77 | 0.00 | 0.84 | 0.00 | 0.80 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 2.69 | 0.00 | 0.00 | 6.95 | 0.00 | 4.55 | 0.00 | 4.80 | 0.00 | 3.32 | 0.00 | 5.29 | 0.00 | 3.96 | 0.00 | 0.00 |
| Financial leverage ratio | 10.00 | 11.47 | 9.82 | 10.36 | 11.03 | 11.03 | 21.30 | 21.30 | 16.22 | 16.22 | 16.62 | 16.62 | 12.30 | 12.30 | 17.63 | 17.63 | 16.49 | 16.49 | 17.91 | 16.90 |
Victoria's Secret & Co has maintained a consistently low debt-to-assets ratio over the period analyzed, with occasional spikes such as in July 2022, October 2022, and October 2023, indicating a higher proportion of assets financed by debt during those periods.
The debt-to-capital ratio also shows a similar pattern of low levels, with intermittent increases in July 2022, October 2022, and October 2023, indicating higher reliance on debt for capital during those periods.
The debt-to-equity ratio for Victoria's Secret & Co reflects a generally low level of debt in relation to equity, with occasional spikes seen in July 2022, October 2022, and October 2023, suggesting higher leverage during those periods.
The financial leverage ratio fluctuates, reflecting the company's changing capital structure and debt levels over time. Lower ratios indicate a higher proportion of equity to debt, while higher ratios suggest higher financial leverage.
Overall, Victoria's Secret & Co's solvency ratios indicate a conservative approach to debt financing, with periodic increases in leverage that may correspond to strategic investments or operational needs.
Coverage ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.81 | 3.39 | 6.56 | 4.96 | 3.75 | 0.95 | -1.53 | -0.60 | 0.37 | 3.70 | 6.59 | 7.48 | 8.57 | 7.00 | 5.12 | 6.26 | 12.44 | 17.94 | 18.55 | 18.96 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt with its earnings. A higher interest coverage ratio indicates a healthier financial position and lower risk of default.
Analyzing Victoria's Secret & Co's interest coverage over the period provided, we observe fluctuations in the ratio. The ratio started at a strong level of 18.96 in January 2022, indicating the company had ample earnings to cover its interest expenses. However, the interest coverage ratio declined over time, dropping to 3.70 by July 29, 2023, and even turning negative in the subsequent periods.
A declining interest coverage ratio signals potential financial distress, as the company's earnings may no longer be sufficient to cover its interest obligations. This deterioration in the ratio could be attributed to various factors such as declining profitability, increasing debt levels, or inefficient cost management.
It is imperative for stakeholders to closely monitor Victoria's Secret & Co's interest coverage ratio and investigate the underlying causes of the declining trend. Addressing the issues affecting the interest coverage ratio is crucial to ensuring the company's long-term financial stability and ability to meet its debt obligations.