Academy Sports Outdoors Inc (ASO)
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 | 575,098 | 604,600 | 710,685 | 655,945 | 685,538 | 696,159 | 703,157 | 692,189 | 681,654 | 684,753 | 678,590 | 728,203 | 781,529 | 822,019 | 873,953 | 900,621 | 919,301 | 859,328 | 818,947 | 828,870 |
| Interest expense (ttm) | US$ in thousands | 36,873 | 30,526 | 33,955 | 35,814 | 26,999 | 35,492 | 23,588 | 23,888 | 23,891 | 24,779 | 25,431 | 26,364 | 26,466 | 25,422 | 24,871 | 23,628 | 33,711 | 23,291 | 33,940 | 23,120 |
| Interest coverage | 15.60 | 19.81 | 20.93 | 18.32 | 25.39 | 19.61 | 29.81 | 28.98 | 28.53 | 27.63 | 26.68 | 27.62 | 29.53 | 32.33 | 35.14 | 38.12 | 27.27 | 36.90 | 24.13 | 35.85 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $575,098K ÷ $36,873K
= 15.60
The interest coverage ratio of Academy Sports Outdoors Inc provides insight into the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). Looking at the historical trend from January 31, 2022, to January 31, 2025, we observe fluctuations in the interest coverage ratio.
The interest coverage ratio ranged from a high of 38.12 on October 29, 2022, to a low of 15.60 on January 31, 2025, indicating some variability in the company's ability to cover its interest payments over this period. A higher interest coverage ratio suggests that the company is more capable of meeting its interest obligations from its operating income.
It is worth noting that the interest coverage ratio dropped significantly towards the end of the period, reaching its lowest point of 15.60 on January 31, 2025. This decrease might indicate potential challenges in managing interest expenses relative to earnings in the most recent period.
Overall, monitoring the interest coverage ratio over time can help stakeholders assess Academy Sports Outdoors Inc's financial health, its ability to manage debt obligations, and its potential risk of default. A declining trend in the interest coverage ratio warrants further investigation to understand the underlying reasons and potential implications for the company's financial stability.
Peer comparison
Jan 31, 2025