Burlington Stores Inc (BURL)
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 | 470,824 | 313,703 | 553,732 | -429,779 | 584,542 |
| Interest expense | US$ in thousands | 5,051 | 6,194 | 8,434 | 7,844 | 4,017 |
| Interest coverage | 93.21 | 50.65 | 65.65 | -54.79 | 145.52 |
February 3, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $470,824K ÷ $5,051K
= 93.21
The interest coverage ratio for Burlington Stores Inc has shown varying trends over the past five years. In fiscal year 2024, the company's interest coverage ratio stood at 93.21, indicating the company's ability to cover its interest expenses approximately 93 times over with its earnings before interest and taxes (EBIT). This represents a significant improvement compared to the previous year where the interest coverage ratio was 50.65.
In fiscal year 2022, the interest coverage ratio increased to 65.65, demonstrating a strong ability to cover interest expenses. However, in fiscal year 2021, the company reported a negative interest coverage ratio of -54.79, suggesting that the company's EBIT was insufficient to cover its interest expenses that year.
The highest interest coverage ratio in the given period was in fiscal year 2020, at 145.52, indicating a robust ability to cover interest expenses with earnings in that year. Overall, while the interest coverage ratio has fluctuated over the years, it is essential for investors and stakeholders to monitor this ratio closely to assess Burlington Stores Inc's ability to meet its interest obligations from its operational earnings.
Peer comparison
Feb 3, 2024