Vestis Corporation (VSTS)
Solvency ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.39 | 0.44 | 0.45 | 0.46 | 0.00 | 0.00 | 0.00 | — | 0.00 | — |
| Debt-to-capital ratio | 0.56 | 0.61 | 0.61 | 0.62 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — |
| Debt-to-equity ratio | 1.27 | 1.55 | 1.57 | 1.61 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — |
| Financial leverage ratio | 3.25 | 3.49 | 3.47 | 3.50 | 3.60 | 3.47 | 3.51 | 0.00 | 1.34 | — |
The solvency ratios of Vestis Corporation indicate the company's ability to meet its long-term financial obligations and debts. Looking at the trends over the past quarters:
1. Debt-to-assets ratio has been fluctuating but generally decreasing from 0.46 in December 2023 to 0.39 in September 2024. This implies that the company has reduced its dependence on debt to finance its assets, which is a positive sign for solvency.
2. Debt-to-capital ratio follows a similar trend, declining from 0.62 in December 2023 to 0.56 in September 2024. This indicates that the company is relying less on debt relative to its capital structure, contributing to a healthier financial position.
3. Debt-to-equity ratio also demonstrates a decreasing trend, decreasing from 1.61 in December 2023 to 1.27 in September 2024. The decreasing ratio suggests that the company is relying less on debt financing in comparison to equity, which can lower financial risk.
4. The financial leverage ratio, representing the extent to which the company uses debt to finance its operations, shows some volatility but generally decreased from 3.60 in September 2023 to 3.25 in September 2024. A decreasing trend in this ratio indicates lower financial risk and a stronger financial position.
Overall, the decreasing trends in debt ratios and financial leverage ratio suggest that Vestis Corporation has been effectively managing its debt levels and improving its solvency position over the analyzed period. This trend is favorable for the company's long-term financial stability and ability to meet its financial obligations.
Coverage ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | |
|---|---|---|---|---|---|---|---|
| Interest coverage | 0.98 | 1.58 | 1.47 | 1.85 | 2.31 | 1.27 | 1.53 |
The interest coverage ratio of Vestis Corporation has fluctuated over the past few quarters. It was at its lowest of 0.98 in the most recent quarter ending on September 30, 2024, indicating that the company's operating income may not be sufficient to cover its interest expense. The ratio improved to 1.58 in the previous quarter, but prior to that, it was at a lower level of 1.47.
Looking further back, the interest coverage ratio was stronger in the quarters ending on December 31, 2023, and September 30, 2023, at 1.85 and 2.31 respectively. However, there was a notable decrease in the ratio in the quarter ending on June 30, 2023, at 1.27, before a slight recovery in the following quarter at 1.53.
Overall, the trend in Vestis Corporation's interest coverage ratio suggests some variability in the company's ability to meet its interest obligations with its operating income. It is essential for the company to closely monitor and manage its interest coverage ratio to ensure financial stability and meet its debt obligations.