Bath & Body Works Inc. (BBWI)
Interest coverage
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,340,000 | 1,366,000 | 1,283,000 | 1,393,000 | 1,399,000 |
| Interest expense | US$ in thousands | 312,000 | 345,000 | 345,000 | 348,000 | 348,000 |
| Interest coverage | 4.29 | 3.96 | 3.72 | 4.00 | 4.02 |
January 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,340,000K ÷ $312,000K
= 4.29
Interest coverage ratio is a key financial metric that reflects a company's ability to meet its interest obligations through its operating income. Bath & Body Works Inc.'s interest coverage ratio over the past five periods ranges from 3.72 to 4.29.
The trend shows a generally consistent performance in meeting its interest expenses, with the ratio staying above 3. This indicates that Bath & Body Works Inc. has generated sufficient operating income to cover its interest payments comfortably.
It is important to note that a higher interest coverage ratio suggests a lower risk of default on debt payments, providing reassurance to investors and creditors. Bath & Body Works Inc.'s interest coverage ratios indicate a stable financial position in terms of meeting its interest obligations. However, it would be beneficial for the company to monitor the ratio closely to ensure sustained ability to service its debt in the long run.
Peer comparison
Jan 31, 2025