WD-40 Company (WDFC)

Solvency ratios

Aug 31, 2024 May 31, 2024 Feb 29, 2024 Nov 30, 2023 Aug 31, 2023 May 31, 2023 Feb 28, 2023 Nov 30, 2022 Aug 31, 2022 May 31, 2022 Feb 28, 2022 Nov 30, 2021 Aug 31, 2021 May 31, 2021 Feb 28, 2021 Nov 30, 2020 Aug 31, 2020 May 31, 2020 Feb 29, 2020 Nov 30, 2019
Debt-to-assets ratio 0.19 0.19 0.19 0.20 0.25 0.25 0.24 0.24 0.25 0.26 0.27 0.27 0.27 0.27 0.29 0.30 0.31 0.25 0.18 0.19
Debt-to-capital ratio 0.27 0.28 0.28 0.29 0.34 0.35 0.35 0.36 0.36 0.36 0.36 0.36 0.36 0.37 0.38 0.40 0.41 0.39 0.29 0.30
Debt-to-equity ratio 0.37 0.38 0.40 0.40 0.52 0.53 0.55 0.56 0.57 0.56 0.57 0.57 0.57 0.57 0.62 0.66 0.71 0.65 0.41 0.42
Financial leverage ratio 1.95 2.00 2.04 1.99 2.08 2.13 2.28 2.31 2.30 2.20 2.13 2.12 2.15 2.11 2.16 2.21 2.26 2.66 2.25 2.17

The solvency ratios of WD-40 Company indicate its ability to meet its long-term financial obligations and the extent to which the company relies on debt to finance its operations.

The debt-to-assets ratio has remained relatively stable around 0.20 over the past few quarters, indicating that the company finances about 20% of its assets through debt. This suggests a conservative approach to debt financing, as the ratio is relatively low.

The debt-to-capital and debt-to-equity ratios have shown an increasing trend over the periods analyzed. The debt-to-capital ratio hovers around 0.35, while the debt-to-equity ratio has been increasing, reaching 0.42 in the most recent period. These ratios indicate that WD-40 Company relies more on debt as a source of financing compared to its equity. The increasing trend may raise concerns about the company's long-term solvency and financial risk.

The financial leverage ratio, which shows the extent to which the company uses debt to fund its operations, has fluctuated but generally remains above 2. This suggests that WD-40 Company has a significant amount of debt in its capital structure, which can magnify returns but also increase financial risk.

Overall, while the debt-to-assets ratio indicates a conservative approach to debt financing, the increasing trend in the debt-to-capital and debt-to-equity ratios, along with the consistently high financial leverage ratio, underscores the importance of monitoring WD-40 Company's debt levels and their impact on its long-term financial health and stability.

Coverage ratios

Aug 31, 2024 May 31, 2024 Feb 29, 2024 Nov 30, 2023 Aug 31, 2023 May 31, 2023 Feb 28, 2023 Nov 30, 2022 Aug 31, 2022 May 31, 2022 Feb 28, 2022 Nov 30, 2021 Aug 31, 2021 May 31, 2021 Feb 28, 2021 Nov 30, 2020 Aug 31, 2020 May 31, 2020 Feb 29, 2020 Nov 30, 2019
Interest coverage 22.45 20.46 18.55 17.19 16.17 16.90 18.98 24.91 31.67 31.85 36.05 34.38 37.12 42.26 36.63 35.77 31.96 31.61 36.20 35.73

The interest coverage ratio for WD-40 Company has shown a consistently strong performance over the past several quarters. The ratio has been trending upwards from around 16.17 in August 2023 to 22.45 in August 2024, indicating the company's ability to comfortably cover its interest expenses with its operating income.

This upward trend in the interest coverage ratio suggests that WD-40 Company has been generating sufficient earnings to meet its interest obligations and has been increasingly more capable of servicing its debt over time. The company's interest coverage ratio has generally remained well above 1, reflecting a healthy financial position where earnings comfortably cover interest payments.

Overall, the strong and improving interest coverage ratio for WD-40 Company indicates financial stability and the ability to manage debt effectively.