Buckle Inc (BKE)

Interest coverage

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	271,059	284,493	299,851	308,803	328,132	327,795	330,587	332,756	335,499	310,445	282,356	260,006	168,022	143,327	122,511	96,581	131,497	122,852	115,843	116,402
Interest expense (ttm)	US$ in thousands	-3,139	6,339	12,631	18,027	25,779	22,749	16,457	11,061	6,448	0	0	0	0	0	0	0	0	325	325	325
Interest coverage		—	44.88	23.74	17.13	12.73	14.41	20.09	30.08	52.03	—	—	—	—	—	—	—	—	378.01	356.44	358.16

February 3, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $271,059K ÷ $-3,139K
= —

The interest coverage ratio for Buckle Inc has shown fluctuating trends over the past few quarters based on the provided data. From November 2019 to April 2023, there was a general increasing trend in the interest coverage ratio, indicating the company's ability to cover its interest expenses improved during this period.

In particular, the interest coverage ratio peaked at 52.03 in January 2022, suggesting a very strong ability to cover interest payments. However, this was followed by a slight decrease in the ratio to 30.08 in April 2022, which still indicated a healthy level of interest coverage.

Subsequently, the interest coverage ratio dropped significantly to 12.73 in April 2023, which might raise concerns about the company's ability to meet its interest obligations comfortably. The ratio further decreased to 17.13 in July 2023, indicating a potential strain on the company's ability to cover interest expenses efficiently.

Moreover, the lack of data points for some periods makes it challenging to track the trend continuously. However, the extremely high interest coverage ratios in November 2019 (378.01) and August 2019 (356.44) suggest very robust financial health and an exceptional ability to cover interest payments during those quarters.

Overall, the analysis of Buckle Inc's interest coverage highlights fluctuations in the company's ability to meet interest obligations, with some periods demonstrating strong financial health while others indicating a potential strain on interest coverage.