Williams-Sonoma Inc (WSM)
Solvency ratios
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 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 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.47 | 2.48 | 2.48 | 2.74 | 2.74 |
Williams-Sonoma Inc has shown a consistent trend of low solvency risk based on its solvency ratios. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been reported as 0.00 over the years from January 2023 to January 2025, indicating that the company has no debt in relation to its assets, capital, or equity. This suggests that Williams-Sonoma Inc relies more on equity financing rather than debt, which is generally considered a favorable financial position in terms of solvency.
Furthermore, the financial leverage ratio has been relatively stable, decreasing slightly from 2.74 in January 2023 to 2.47 in January 2025. This indicates that the company's reliance on debt to finance its operations has been decreasing over time, which may reflect a lower financial risk and a stronger solvency position.
Overall, based on the solvency ratios provided, Williams-Sonoma Inc appears to have a solid financial structure with low debt levels and a conservative capital structure, indicating a healthy financial position and lower risk of insolvency.
Coverage ratios
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | |
|---|---|---|---|---|---|
| Interest coverage | — | 43.16 | 42.66 | 465.89 | 663.02 |
In analyzing Williams-Sonoma Inc's interest coverage ratio, we observe significant fluctuations over the reported periods:
1. As of January 29, 2023, the interest coverage ratio was exceptionally high at 663.02, indicating the company's strong ability to cover its interest expenses with its operating income.
2. By January 31, 2023, the interest coverage ratio decreased to 465.89, still indicating a robust ability to meet interest obligations from operating profits, although at a slightly lower level compared to the previous period.
3. A notable decline in the interest coverage ratio is observed as of January 28, 2024, where the ratio plummeted to 42.66. This sharp decrease suggests a potential strain on the company's ability to cover its interest expenses with its operating income.
4. There was a slight improvement in the interest coverage ratio by January 31, 2024, which increased to 43.16. Despite the increase, the ratio remains at a relatively low level, indicating ongoing challenges in meeting interest payments from operating earnings.
5. Notably, the data for January 31, 2025, is not available (marked as "—"). This lack of information for the latest period hinders a comprehensive assessment of the company's current interest coverage position.
Overall, the fluctuating trend in Williams-Sonoma Inc's interest coverage ratio raises concerns about the company's ability to consistently cover its interest expenses over the analyzed periods. The significant decrease in the ratio in January 28, 2024, highlights a potential need for the company to address its interest obligations in order to improve its financial stability and health.