Vestis Corporation (VSTS)
Solvency ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||||
|---|---|---|---|---|---|---|---|
| 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 | 0.00 | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — |
| Financial leverage ratio | 3.50 | 3.60 | 3.47 | 3.51 | 0.00 | 1.34 | — |
The solvency ratios of Vestis Corporation indicate a consistently low level of leverage and debt relative to its assets, capital, and equity throughout the analyzed quarters of 2023. The debt-to-assets, debt-to-capital, and debt-to-equity ratios all consistently remained at 0.00, indicating that the company has not relied heavily on debt to finance its operations.
In terms of financial leverage, although there has been some fluctuation in the financial leverage ratio from 3.47 to 3.60 during the quarters, the ratios are still relatively moderate, with the highest ratio recorded at 3.60. This suggests that Vestis Corporation has a manageable level of financial leverage and does not have an excessive amount of debt in relation to its equity.
Overall, based on the solvency ratios provided, Vestis Corporation appears to have a strong financial position with low debt levels and reasonable leverage, which may indicate a lower risk of financial distress and the ability to meet its debt obligations effectively.
Coverage ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | |
|---|---|---|---|---|
| Interest coverage | 1.85 | 2.31 | 1.27 | 1.53 |
Vestis Corporation's interest coverage ratio has shown some fluctuation over the past year. In December 2023, the interest coverage ratio was 1.85, which indicates that the company generated 1.85 times the earnings necessary to cover its interest expenses. This suggests a moderate ability to meet interest obligations.
The trend in interest coverage ratios for the previous quarters shows that in September 2023, the ratio improved to 2.31, indicating a stronger ability to cover interest payments compared to December 2023. However, in June 2023 and March 2023, the interest coverage ratios decreased to 1.27 and 1.53, respectively, reflecting a lower ability to meet interest expenses during those periods.
Overall, Vestis Corporation's interest coverage has shown variability over the past year, with fluctuations that could indicate changes in the company's profitability and financial performance. Monitoring this ratio closely can provide insights into the company's ability to manage its debt obligations and its overall financial health.