Winnebago Industries Inc (WGO)

Winnebago Industries Inc's solvency ratios indicate its ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable over the past five years, ranging from 0.23 to 0.30, suggesting that the company maintains a low level of debt in relation to its total assets.

The debt-to-capital ratio has also remained consistent, fluctuating between 0.30 and 0.38. This ratio reflects the proportion of the company's capital that is funded by debt, indicating that Winnebago Industries relies moderately on debt financing for its operations.

The debt-to-equity ratio has shown a decreasing trend from 0.62 in 2020 to 0.50 in 2024. This indicates that the company has been gradually reducing its reliance on debt in relation to equity, which could enhance its financial stability and reduce potential risks associated with high debt levels.

The financial leverage ratio has slightly fluctuated over the years, ranging from 1.78 to 2.07. This ratio measures the extent to which a company's operations are funded by debt, with higher ratios indicating a greater reliance on debt financing. Winnebago Industries' financial leverage ratio indicates that the company has a moderate level of financial leverage, which should be carefully managed to optimize its capital structure and overall financial health.

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Coverage ratios

Winnebago Industries Inc's interest coverage ratio has shown consistent improvement over the past five years, indicating the company's increasing ability to meet its interest obligations comfortably. The interest coverage ratio on Aug 31, 2024, stood at a robust 31.31, reflecting a significant increase from the previous year's figure of 14.62. This suggests that Winnebago Industries generated over 31 times the amount needed to cover its interest expenses in 2024, a substantial improvement in its financial health.

The company's interest coverage has been on a positive trend since 2020, when it was at a lower level of 3.06. The steady increase in this ratio signifies that Winnebago Industries has been managing its interest expenses effectively, possibly through increased profitability or better debt management strategies.

Overall, the significant improvement in Winnebago Industries Inc's interest coverage ratio indicates that the company's financial position has strengthened, and it now has a greater cushion to cover its interest payments, which could enhance investor confidence and potentially signal further growth opportunities.