Academy Sports Outdoors Inc (ASO)
Interest coverage
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 677,855 | 678,690 | 721,481 | 767,252 | 846,549 | 839,951 | 876,542 | 874,366 | 907,947 | 850,777 | 716,220 |
| Interest expense (ttm) | US$ in thousands | 4,839 | 3,345 | 3,450 | 3,551 | 3,654 | 3,065 | 2,389 | 1,814 | 3,067 | 5,312 | 5,312 |
| Interest coverage | 140.08 | 202.90 | 209.12 | 216.07 | 231.68 | 274.05 | 366.91 | 482.01 | 296.04 | 160.16 | 134.83 |
February 3, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $677,855K ÷ $4,839K
= 140.08
Academy Sports Outdoors Inc's interest coverage has shown a consistent and strong trend over the past several quarters, indicating the company's ability to meet its interest obligations comfortably. The interest coverage ratio has been consistently above 100, indicating that the company's earnings before interest and taxes (EBIT) are more than sufficient to cover its interest expenses.
The ratio has been steadily increasing from 134.83 in July 2021 to 482.01 in April 2022, reflecting a significant improvement in the company's ability to service its debt. This increasing trend continued until the most recent data point of 140.08 in February 2024, indicating that the company's financial health remains robust even though there was a slight decrease in the ratio compared to the previous quarters.
Overall, the consistently high and improving interest coverage ratio suggests that Academy Sports Outdoors Inc has a strong ability to meet its interest payments and demonstrates a healthy financial position.
Peer comparison
Feb 3, 2024