BJs Wholesale Club Holdings Inc (BJ)
Interest coverage
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 800,419 | 737,986 | 617,323 | 642,392 | 352,199 |
| Interest expense | US$ in thousands | 61,177 | 40,082 | 49,059 | 69,020 | 99,238 |
| Interest coverage | 13.08 | 18.41 | 12.58 | 9.31 | 3.55 |
February 3, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $800,419K ÷ $61,177K
= 13.08
Based on the interest coverage ratios provided for BJs Wholesale Club Holdings Inc over the past five years, we observe a fluctuating trend. The interest coverage ratio measures a company's ability to cover its interest payments with its operating income.
In 2020, the interest coverage ratio was 3.55, indicating that the company generated enough operating income to cover its interest expenses 3.55 times over. However, this ratio improved significantly in the following years, reaching 9.31 in 2021, 12.58 in 2022, and further improving to 18.41 in 2023.
The most recent data point for February 3, 2024, shows an interest coverage ratio of 13.08, suggesting a strong ability to cover interest payments with operating income. This trend indicates the company's increasing capacity to meet its debt obligations comfortably through its operational earnings.
Overall, the trend in BJs Wholesale Club Holdings Inc's interest coverage ratios reflects a positive trajectory, demonstrating an improving financial health in terms of its ability to service interest payments over the years.
Peer comparison
Feb 3, 2024