John Wiley & Sons (WLY)

The solvency ratios of John Wiley & Sons show the company's ability to meet its long-term financial obligations and the extent to which it relies on borrowed funds to finance its operations.

The debt-to-assets ratio has shown a slight increasing trend over the past five years, from 0.24 in 2020 to 0.28 in 2024. This indicates that the proportion of the company's assets financed by debt has been gradually rising.

The debt-to-capital ratio also depicts an upward trend over the same period, increasing from 0.45 in 2020 to 0.51 in 2024. This suggests that a higher percentage of the company's capital structure is funded by debt.

The debt-to-equity ratio has shown fluctuation but generally increased from 0.82 in 2020 to 1.04 in 2024. This indicates an increasing reliance on debt relative to equity to finance the company's operations.

The financial leverage ratio has also demonstrated an upward trajectory, rising from 3.39 in 2020 to 3.68 in 2024. This suggests that the company has been using more debt to generate earnings and maximize shareholder returns.

Overall, the solvency ratios of John Wiley & Sons reveal a gradual increase in the company's leverage and reliance on debt financing over the past five years, which may pose higher financial risk and indicate a need for careful management of debt levels in the future.

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Coverage ratios

John Wiley & Sons' interest coverage ratio has shown fluctuations over the past five years. The interest coverage ratio provides insight into the company's ability to meet its interest obligations with its operating income. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses.

In April 2024, John Wiley & Sons had an interest coverage ratio of -2.82, implying that the company's operating income was insufficient to cover its interest expenses. This negative ratio raises concerns about the company's financial stability and its ability to meet debt obligations.

In contrast, in the previous two years (2023 and 2022), the company's interest coverage ratios were 1.88 and 11.59, respectively, indicating improved ability to cover interest expenses. This positive trend suggests better financial health and lower risk of default.

However, in April 2021 and 2020, the interest coverage ratios were 10.57 and -1.53, respectively, showing fluctuating performance in meeting interest obligations. The negative ratio in 2020 highlights a period of financial distress.

Overall, the varying interest coverage ratios reflect fluctuations in John Wiley & Sons' financial performance and ability to service its debt. Continuous monitoring of this ratio is crucial to assess the company's financial health and risk profile.