Burlington Stores Inc (BURL)
Interest coverage
| Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 677,893 | 645,869 | 593,698 | 536,124 | 470,015 | 406,218 | 362,988 | 337,184 | 311,898 | 239,525 | 248,402 | 356,293 | 551,000 | 561,263 | 552,921 | 319,388 | -432,437 | -350,185 | -254,089 | -48,751 |
| Interest expense (ttm) | US$ in thousands | 3,079 | 4,956 | 3,972 | 4,073 | 4,285 | 3,031 | 3,869 | 4,091 | 4,449 | 4,807 | 4,948 | 5,041 | 5,792 | 6,180 | 6,253 | 6,320 | 5,212 | 4,200 | 3,984 | 3,768 |
| Interest coverage | 220.17 | 130.32 | 149.47 | 131.63 | 109.69 | 134.02 | 93.82 | 82.42 | 70.11 | 49.83 | 50.20 | 70.68 | 95.13 | 90.82 | 88.42 | 50.54 | -82.97 | -83.38 | -63.78 | -12.94 |
February 1, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $677,893K ÷ $3,079K
= 220.17
The interest coverage ratio measures the ability of Burlington Stores Inc to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a company is more capable of covering its interest expenses.
Based on the data provided, Burlington Stores Inc had negative interest coverage ratios in the fiscal periods up to January 2021, indicating that the company's operating income was insufficient to cover its interest expenses during that time. However, starting from May 1, 2021, the interest coverage ratio turned positive, indicating the company's operating income was more than enough to cover its interest payments.
The interest coverage ratio has been consistently increasing from May 1, 2021 to February 1, 2025, reaching a peak of 220.17. This significant improvement demonstrates Burlington Stores Inc's strong ability to cover its interest expenses with its operating income, indicating a more financially stable position and lower risk of defaulting on its debt obligations.
Overall, the trend of increasing interest coverage ratio over the periods analyzed suggests that Burlington Stores Inc has been effectively managing its interest obligations and improving its financial health.
Peer comparison
Feb 1, 2025