Boot Barn Holdings Inc (BOOT)
Interest coverage
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 198,214 | 231,787 | 258,338 | 86,326 | 73,668 |
| Interest expense | US$ in thousands | 672 | 713 | 774 | 795 | 790 |
| Interest coverage | 294.96 | 325.09 | 333.77 | 108.59 | 93.25 |
March 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $198,214K ÷ $672K
= 294.96
Boot Barn Holdings Inc's interest coverage ratio has shown a generally improving trend over the past five years, indicating the company's increasing ability to cover its interest expenses with its earnings before interest and taxes. In particular, the substantial increase in the interest coverage ratio from 2020 to 2022 reflects a significant enhancement in the company's ability to meet its interest obligations.
The interest coverage ratio for the most recent fiscal year ending on March 31, 2024, stands at 294.96, suggesting a very strong ability to cover interest expenses. This high ratio indicates that the company's earnings before interest and taxes are significantly higher than its interest expenses, signifying a lower financial risk related to meeting interest payments.
Overall, Boot Barn Holdings Inc's interest coverage ratio demonstrates a healthy financial position in terms of its ability to manage its debt obligations with operating income, providing a favorable signal to investors, creditors, and other stakeholders regarding the company's financial health and stability.
Peer comparison
Mar 31, 2024