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 | ||
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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.
Peer comparison
Jan 31, 2025