Buckle Inc (BKE)

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	271,059	328,132	335,499	168,022	131,497
Interest expense	US$ in thousands	—	25,779	20,945	23,788	29,999
Interest coverage		—	12.73	16.02	7.06	4.38

February 3, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $271,059K ÷ $—K
= —

Interest coverage is a key financial ratio that indicates a company's ability to meet its interest obligations with its operating income. Buckle Inc's interest coverage has fluctuated over the past five years, as shown in the table.

In the most recent fiscal year ending on February 3, 2024, Buckle Inc did not report a specific interest coverage ratio. However, in the preceding year, the company had a healthy interest coverage ratio of 12.73, indicating that it generated operating income more than enough to cover its interest expenses.

Looking back further, Buckle Inc's interest coverage ratios for the previous years were also relatively strong, with ratios of 16.02, 7.06, and 4.38 for the fiscal years ending in 2023, 2022, and 2021 respectively. These ratios demonstrate the company's ability to comfortably meet its interest obligations through its operating earnings during those years.

Overall, Buckle Inc has maintained varying levels of interest coverage over the past five years, with some fluctuations observed. It is important for investors and stakeholders to monitor this ratio to assess the company's financial health and its ability to manage debt obligations effectively.