Abercrombie & Fitch Company (ANF)

Interest coverage

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Feb 3, 2024 Jan 31, 2024 Oct 31, 2023 Oct 28, 2023 Jul 31, 2023 Jul 29, 2023 Apr 30, 2023 Apr 29, 2023 Jan 31, 2023 Jan 28, 2023 Oct 31, 2022 Oct 29, 2022 Jul 31, 2022 Jul 30, 2022 Apr 30, 2022 Jan 31, 2022
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 780,754 738,054 773,949 723,759 721,127 588,708 454,071 352,799 248,787 248,495 245,675 231,903 215,438 124,300 35,087 5,480 69,963 169,144 250,328 331,883
Interest expense (ttm) US$ in thousands 12,077 18,229 24,351 27,730 22,621 23,565 17,971 16,861 19,633 19,179 22,195 22,323 26,175 25,911 28,715 28,938 28,602 28,644 28,997 28,458
Interest coverage 64.65 40.49 31.78 26.10 31.88 24.98 25.27 20.92 12.67 12.96 11.07 10.39 8.23 4.80 1.22 0.19 2.45 5.91 8.63 11.66

January 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $780,754K ÷ $12,077K
= 64.65

The interest coverage ratio indicates the company's ability to meet its interest obligations on its debt using its operating income. A higher interest coverage ratio is generally seen as favorable, suggesting the company is more capable of servicing its debt.

Analyzing the interest coverage of Abercrombie & Fitch Company based on the provided data, we observe fluctuations over the periods. The interest coverage ratio ranged from a low of 0.19 on October 29, 2022, to a high of 64.65 on January 31, 2025.

The ratio experienced a significant decline from July 29, 2023, where it was 12.96, to 0.19 on October 29, 2022. This substantial decrease may indicate potential financial distress or challenges in meeting interest payments during that period.

Subsequently, there was a notable improvement and sustained growth in the interest coverage ratio from October 29, 2022, reaching 64.65 on January 31, 2025. This upward trend suggests enhanced financial stability and a stronger ability to cover interest expenses using operating income.

Overall, the interest coverage ratio of Abercrombie & Fitch Company has displayed volatility but showed significant recovery and strength in more recent periods, reflecting improved financial health and a better ability to meet interest obligations.