Williams-Sonoma Inc (WSM)
Solvency ratios
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 0.07 | 0.07 | 0.07 | 0.00 | 0.08 | 0.08 | 0.08 |
| 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 | 0.18 | 0.18 | 0.20 | 0.00 | 0.21 | 0.21 | 0.21 |
| 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 | 0.21 | 0.22 | 0.25 | 0.00 | 0.26 | 0.27 | 0.27 |
| Financial leverage ratio | 2.48 | 2.69 | 2.82 | 3.05 | 2.74 | 3.25 | 3.38 | 3.21 | 2.78 | 2.90 | 2.78 | 2.84 | 2.82 | 3.07 | 3.37 | 3.62 | 3.28 | 3.50 | 3.45 | 3.38 |
Based on the solvency ratios of Williams-Sonoma Inc over multiple periods, several trends can be observed:
1. Debt-to-assets ratio: Williams-Sonoma maintained a consistently low debt-to-assets ratio of 0.00% in all the periods analyzed. This indicates that the company has not relied heavily on debt to finance its assets, which can be considered a positive sign of financial stability.
2. Debt-to-capital ratio: The debt-to-capital ratio remained at 0.00% for most periods, except for a slight increase to 0.18% in January 2021, before returning to 0.00% in the subsequent periods. This suggests that the company has predominantly used equity to finance its operations rather than debt.
3. Debt-to-equity ratio: Similar to the debt-to-capital ratio, the debt-to-equity ratio also shows minimal debt usage by Williams-Sonoma, with the ratio consistently at 0.00% in most periods. There was a slight increase in the ratio to 0.27% in May 2019, before trending downwards in the following periods.
4. Financial leverage ratio: The financial leverage ratio provides an overall picture of the company's use of debt in its capital structure. Williams-Sonoma experienced fluctuations in its financial leverage ratio across the periods analyzed, ranging from 2.48 to 3.62. These fluctuations indicate variations in the level of debt and equity in the company's capital structure over time.
Overall, Williams-Sonoma Inc's solvency ratios demonstrate a conservative approach to debt management, with a preference for equity financing. The company's consistent low debt ratios indicate a strong financial position and effective capital structure management to support its long-term sustainability and growth.
Coverage ratios
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | — | — | 3,626.43 | 248.08 | 784.84 | 2,153.20 | 3,644.22 | 685.11 | 309.74 | 133.94 | 71.33 | 56.11 | 46.45 | 42.98 | 50.28 | 52.62 | 50.78 | 51.51 | 57.17 |
The interest coverage ratio for Williams-Sonoma Inc has fluctuated significantly over the periods indicated. The highest interest coverage ratio was observed on April 30, 2023, at 3,626.43, indicating a strong ability to cover interest expenses with operating income during that period.
The interest coverage ratio generally remained at healthy levels, above 50, for most of the periods within the provided data. This suggests that Williams-Sonoma Inc was able to comfortably meet its interest obligations using its operating income.
However, there were a few periods, notably from August 1, 2021, to July 31, 2022, where the interest coverage ratio fell below 100, indicating a tighter ability to cover interest expenses with operating income during those periods.
Overall, the interest coverage ratio provides insight into the company's ability to meet its interest obligations, manage its debt burden, and assess its financial risk over time.