Academy Sports Outdoors Inc (ASO)
Interest coverage
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 677,855 | 846,549 | 907,947 | 420,398 |
| Interest expense | US$ in thousands | 4,839 | 3,654 | 5,924 | 6,116 |
| Interest coverage | 140.08 | 231.68 | 153.27 | 68.74 |
February 3, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $677,855K ÷ $4,839K
= 140.08
Based on the data provided for Academy Sports Outdoors Inc, the interest coverage has shown strong consistency over the past four years. The interest coverage ratio measures the company's ability to meet its interest obligations from its operating earnings.
In 2024, the interest coverage ratio stands at 140.08, indicating that the company generated operating earnings 140.08 times higher than its interest expenses for that year. This suggests Academy Sports Outdoors Inc has a comfortable buffer to cover its interest payments.
Comparing this to previous years, the company's interest coverage ratio was 231.68 in 2023, 153.27 in 2022, and 68.74 in 2021. The consistent high interest coverage ratios over the years indicate that the company has been effectively managing its interest expenses relative to its operating earnings.
Overall, the trend in Academy Sports Outdoors Inc's interest coverage ratio shows a healthy financial position and ability to service its debt obligations.
Peer comparison
Feb 3, 2024