Williams-Sonoma Inc (WSM)
Solvency ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.47 | 2.61 | 2.32 | 2.34 | 2.48 | 2.48 | 2.69 | 2.69 | 2.82 | 2.82 | 3.05 | 2.74 | 2.74 | 3.25 | 3.25 | 3.38 | 3.21 | 3.21 | 2.78 | 2.78 |
Based on the provided data, Williams-Sonoma Inc consistently maintains a strong solvency position over the analyzed periods, as indicated by its remarkably low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00. These ratios demonstrate that the company operates with minimal financial leverage, indicating a conservative approach to funding its operations.
The financial leverage ratio, which measures the extent to which the company utilizes debt in its capital structure, has shown a decreasing trend over the analyzed periods. This decreasing trend signifies that the company is gradually reducing its reliance on debt financing, which can enhance its financial stability and flexibility in the long term.
Overall, the solvency ratios of Williams-Sonoma Inc suggest a prudent financial management strategy that prioritizes a healthy balance between debt and equity, contributing to the company's long-term sustainability and resilience in the face of economic challenges.
Coverage ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 36.69 | 40.31 | 40.97 | 40.74 | 407.73 | — | 192.37 | 125.66 | 134.82 | 93.51 | 140.95 | 200.48 | 399.99 | 607.66 | 1,812.04 | 3,044.42 | 3,218.95 | 4,708.17 | 4,841.10 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. A higher ratio indicates that the company is more capable of servicing its debt obligations.
Analyzing the interest coverage ratios of Williams-Sonoma Inc based on the provided data reveals a downward trend from January 30, 2022, to January 31, 2023, showing a gradual decrease in the company's ability to cover its interest expenses. The ratio started at a high of 4,841.10 on January 30, 2022, which indicates a strong ability to meet financial obligations. However, it declined to 140.95 by January 31, 2023, indicating a significant decrease in financial health.
The trend continued to deteriorate as the interest coverage ratio dropped to 93.51 on April 30, 2023, and then increased slightly to 134.82 on July 30, 2023. However, by October 31, 2023, the interest coverage ratio was not provided, which could indicate a lack of data or a significant decline in the company's financial performance.
From January 28, 2024, to January 31, 2025, the interest coverage ratios remained relatively low, ranging from 40.74 to an unspecified value, indicating ongoing challenges in meeting interest payments.
Overall, the decreasing trend in Williams-Sonoma Inc's interest coverage ratios over the analyzed period raises concerns about the company's ability to service its debt and may require further examination of its financial strategies and performance.