YETI Holdings Inc (YETI)

The solvency ratios of YETI Holdings Inc, as indicated by the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, demonstrate a positive trend of improvement over the five-year period from 2019 to 2023.

The debt-to-assets ratio, which shows the proportion of total assets financed by debt, decreased steadily from 0.45 in 2019 to 0.06 in 2023. This indicates that the company has been reducing its reliance on debt to fund its assets.

Similarly, the debt-to-capital ratio, which measures the proportion of capital structure funded by debt, also decreased from 0.70 in 2019 to 0.10 in 2023. This suggests that the company's capital structure has become less reliant on debt financing over the years.

The debt-to-equity ratio, indicating the level of debt relative to shareholder equity, also exhibited a downward trend from 2.31 in 2019 to 0.11 in 2023. This shows that the company has been decreasing its debt burden in relation to equity.

Moreover, the financial leverage ratio, which reflects the company's financial risk, decreased from 5.16 in 2019 to 1.79 in 2023. This indicates that YETI Holdings Inc has been managing its financial leverage more effectively, reducing the risks associated with high leverage.

Overall, the improving solvency ratios of YETI Holdings Inc suggest that the company has been strengthening its financial position by reducing its debt levels and improving its capital structure over the five-year period. This trend reflects positively on the company's ability to meet its financial obligations and indicates a more robust financial position.

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Coverage ratios

YETI Holdings Inc's interest coverage ratio has shown a positive trend over the past five years, indicating the company's improving ability to meet its interest obligations through its earnings before interest and taxes. The interest coverage ratio increased significantly from 4.09 in 2019 to 240.86 in 2023, reflecting a substantial improvement in the company's financial health and profitability. This upward trend suggests that YETI Holdings Inc has been generating sufficient earnings to comfortably cover its interest expenses, which is a positive sign for investors and creditors. The notable increase in the interest coverage ratio over the years demonstrates the company's enhanced ability to service its debt and indicates a lower risk of default.