BJs Wholesale Club Holdings Inc (BJ)
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 | 770,396 | 807,818 | 800,589 | 796,289 | 834,909 | 821,173 | 799,288 | 786,683 | 759,477 | 749,432 | 741,956 | 747,154 | 753,051 | 765,737 | 764,973 | 723,322 | 703,191 | 657,410 | 635,537 | 645,237 |
| Interest expense (ttm) | US$ in thousands | 49,549 | 54,858 | 57,824 | 63,073 | 67,126 | 67,841 | 68,556 | 65,242 | 47,238 | 44,691 | 68,199 | 65,959 | 65,959 | 63,106 | 23,324 | 18,715 | 30,592 | 63,677 | 75,531 | 69,490 |
| Interest coverage | 15.55 | 14.73 | 13.85 | 12.62 | 12.44 | 12.10 | 11.66 | 12.06 | 16.08 | 16.77 | 10.88 | 11.33 | 11.42 | 12.13 | 32.80 | 38.65 | 22.99 | 10.32 | 8.41 | 9.29 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $770,396K ÷ $49,549K
= 15.55
The interest coverage ratio for BJs Wholesale Club Holdings Inc has shown some fluctuations over the periods presented. The interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income.
Initially, the interest coverage ratio decreased slightly from 9.29 in January 2022 to 8.41 in April 2022, suggesting a slight decline in the company's ability to cover its interest expenses. However, the ratio improved significantly in July and October 2022, reaching 10.32 and 38.65, respectively. This sharp increase indicates a substantial improvement in the company's ability to cover its interest costs.
Subsequently, the interest coverage ratio fluctuated between 10.88 and 16.77 from April to July 2023, showing some variability in the company's ability to cover its interest expenses. The ratio declined to 11.66 in October 2023 but rose again to 12.44 in February 2024.
From February 2024 to October 2024, the interest coverage ratio consistently increased, ranging from 12.44 to 14.73, indicating a strengthening ability to fulfill interest obligations. In January 2025, the interest coverage ratio further improved to 15.55, reflecting a healthy coverage of interest expenses with operating income.
Overall, the trend in the interest coverage ratio for BJs Wholesale Club Holdings Inc suggests fluctuations in the company's ability to cover its interest expenses over the periods analyzed, with some periods showing significant improvements while others displaying slight declines. It is important for investors and stakeholders to monitor this ratio to assess the company's ability to meet its interest obligations.
Peer comparison
Jan 31, 2025