John Wiley & Sons (WLY)

The solvency ratios for John Wiley & Sons, as provided in the data, indicate a consistent financial profile over the analyzed periods. The debt-to-assets ratio remains at 0.00 across April 30, 2021 through April 30, 2024, signifying that the company has not utilized debt financing and indicates a fully equity-financed structure with no reliance on liabilities to fund assets. Similarly, the debt-to-capital ratio and debt-to-equity ratio are also recorded at 0.00 throughout this period, reinforcing the absence of debt and the reliance solely on shareholders' equity for financing its operations.

The financial leverage ratio, which measures the extent of assets financed through equity relative to debt, shows values above 2, with 3.16 in 2021 declining momentarily to 2.94 in 2022, then slightly increasing to 2.97 in 2023 and further to 3.68 in 2024. These figures suggest that the company maintains a relatively high level of financial leverage in terms of assets relative to equity, despite having no reported debt. This is likely due to the company's high equity base relative to its assets, implying a conservative capital structure with minimal or no debt obligations.

Overall, the data indicates a company that is operating with an entirely equity-funded capital structure, exhibiting no leverage through debt. The increasing trend in the financial leverage ratio from 2022 to 2024 may reflect changes in asset composition or capital structure practices, but does not point to increased reliance on debt. The absence of debt-related ratios underscores a conservative approach to solvency, potentially reducing financial risk but also limiting leverage-based growth opportunities.

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Coverage ratios

The interest coverage ratio for John Wiley & Sons demonstrates significant variability over the analyzed period. As of April 30, 2021, the company's interest coverage stood at 10.37, indicating a robust capacity to meet interest obligations, with earnings substantially exceeding interest expenses. This ratio increased slightly to 11.38 by April 30, 2022, further reinforcing the company's strong financial cushion.

However, a notable decline occurred by April 30, 2023, when the interest coverage sharply decreased to 2.01. Although still positive, this indicates diminished earnings capacity relative to interest expenses and suggests increased financial strain or reduced profitability. The trend continued into the subsequent year, with the ratio falling into negative territory at -2.62 on April 30, 2024, signaling that earnings were insufficient to cover interest expenses, and possibly reflecting losses or significant non-recurring charges that impair earnings.

By April 30, 2025, the interest coverage ratio reached zero, implying that the company's earnings were exactly equal to interest obligations—indicating an extremely precarious financial position with no surplus to buffer interest payments. Such a ratio also suggests potential liquidity concerns and heightened credit risk. Overall, the progression from high coverage to negative and zero levels indicates a substantial deterioration in the company's ability to comfortably meet interest expenses over the analyzed period.