Buckle Inc (BKE)
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 | 186,881 | 187,159 | 283,662 | 299,467 | 321,136 | 281,394 | 241,652 | 231,317 | 220,982 | 274,158 | 327,334 | 353,027 | 378,720 | 334,496 | 290,272 | 283,908 | 314,085 | 357,972 | 374,474 | 383,630 |
| Interest expense (ttm) | US$ in thousands | 0 | 0 | 3,139 | 3,139 | 3,139 | 3,139 | 0 | 3,139 | 0 | 9,478 | 18,956 | 22,109 | 31,540 | 27,458 | 23,376 | 21,697 | 21,853 | 22,905 | 17,509 | 12,896 |
| Interest coverage | — | — | 90.37 | 95.40 | 102.31 | 89.64 | — | 73.69 | — | 28.93 | 17.27 | 15.97 | 12.01 | 12.18 | 12.42 | 13.09 | 14.37 | 15.63 | 21.39 | 29.75 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $186,881K ÷ $0K
= —
The interest coverage ratio for Buckle Inc has shown fluctuations over the period from January 31, 2022, to January 31, 2025. The interest coverage ratio indicates the company's ability to meet its interest obligations on outstanding debt with its earnings before interest and taxes (EBIT).
Initially, in January 2022, the interest coverage ratio was strong at 29.75, reflecting a comfortable margin of safety in meeting interest payments. However, the ratio started declining in subsequent periods. By October 2023, the interest coverage ratio had decreased significantly to 73.69, possibly indicating a higher level of debt relative to earnings.
Notably, in the following periods, the interest coverage ratio spiked to a significant level, reaching 102.31 in February 2024. This suggests that the company's earnings were sufficiently high to cover interest expenses.
Overall, fluctuations in the interest coverage ratio signal changes in Buckle Inc's financial health and ability to service its debt obligations. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's risk of default and its overall financial stability.
Peer comparison
Jan 31, 2025