Burlington Stores Inc (BURL)
Interest coverage
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 677,893 | 470,824 | 313,703 | 553,732 | -429,779 |
| Interest expense | US$ in thousands | 3,079 | 5,051 | 6,194 | 8,434 | 7,844 |
| Interest coverage | 220.17 | 93.21 | 50.65 | 65.65 | -54.79 |
February 1, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $677,893K ÷ $3,079K
= 220.17
Based on the provided data for Burlington Stores Inc, the interest coverage ratio has fluctuated over the past few years.
As of January 30, 2021, the interest coverage ratio was -54.79, indicating that Burlington Stores Inc did not generate enough operating income to cover its interest expenses, which could be a cause for concern.
However, there has been a significant improvement in the company's financial position since then. By January 29, 2022, the interest coverage ratio improved substantially to 65.65, suggesting that the company's operating income was more than sufficient to cover its interest payments.
In the following years, Burlington Stores Inc continued to strengthen its financial position, with the interest coverage ratio reaching 50.65 by January 28, 2023, 93.21 by February 3, 2024, and a significant increase to 220.17 by February 1, 2025. These positive trends indicate that the company's ability to meet its interest obligations has significantly improved over time.
Overall, the upward trend in the interest coverage ratio over the years reflects Burlington Stores Inc's increasing profitability and financial stability, which is a positive indicator for investors and creditors.
Peer comparison
Feb 1, 2025