YETI Holdings Inc (YETI)

YETI Holdings Inc has demonstrated a consistent improvement in its solvency ratios over the years. The debt-to-assets ratio has decreased from 0.15 in 2020 to 0.06 in 2024, indicating that the company's reliance on debt relative to its total assets has been declining. Similarly, the debt-to-capital ratio has decreased from 0.28 in 2020 to 0.09 in 2024, suggesting that the proportion of debt in the company's capital structure has been decreasing.

Moreover, the debt-to-equity ratio has shown a significant reduction from 0.38 in 2020 to 0.10 in 2024, indicating that YETI Holdings Inc has been decreasing its dependence on debt financing relative to equity financing. The financial leverage ratio has also decreased steadily from 2.56 in 2020 to 1.74 in 2024, reflecting a decreasing trend in the company's financial leverage and indicating a stronger equity position relative to debt.

Overall, the decreasing trend in these solvency ratios reflects YETI Holdings Inc's improving financial health and indicates a strengthening balance sheet with lower debt levels and a more robust capital structure. This highlights the company's ability to meet its financial obligations and suggests improved financial stability and resilience over the years.

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Coverage ratios

YETI Holdings Inc's interest coverage has shown a consistent improvement over the years as indicated by the following data:

- As of December 31, 2020, the interest coverage ratio stood at 23.41, indicating that the company generated earnings 23.41 times more than the amount required to cover its interest expenses.
- By December 31, 2021, the interest coverage ratio had strengthened significantly to 81.39, showing a substantial increase in the company's ability to cover its interest obligations with operating earnings.
- Although there was a slight decrease in the interest coverage ratio by December 31, 2022, to 27.01, it remained at a healthy level, indicating that the company continued to comfortably meet its interest payment obligations.
- The interest coverage ratio soared to an impressive 240.86 by December 31, 2023, demonstrating a significant enhancement in YETI's financial stability and ability to service its debt with earnings.
- By December 31, 2024, YETI's interest coverage ratio reached a remarkable level of 378.08, reflecting a substantial increase in the company's earnings relative to its interest expenses.

Overall, YETI Holdings Inc has consistently improved its interest coverage over the years, showcasing a strong capacity to meet its interest payments and suggesting a healthy financial position.