Burlington Stores Inc (BURL)
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 | 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 | 583,935 | 547,945 | 520,292 | 503,632 |
| Interest expense (ttm) | US$ in thousands | 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 | 3,402 | 2,585 | 2,293 | 2,082 |
| Interest coverage | 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 | 171.64 | 211.97 | 226.90 | 241.90 |
February 3, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $470,015K ÷ $4,285K
= 109.69
The interest coverage ratio of Burlington Stores Inc has fluctuated over the past several quarters. The ratio measures the company's ability to cover its interest expenses with its operating profits.
On Feb 3, 2024, the interest coverage ratio was strong at 109.69, indicating that the company's operating profits were 109.69 times higher than its interest expense for that period. This suggests that the company had a comfortable cushion to meet its interest obligations.
The ratio improved further in Oct 28, 2023, reaching 134.02, reflecting even better coverage of interest expenses. However, in the subsequent quarters, the ratio declined gradually, dropping to 70.11 by Jan 28, 2023. This decreasing trend may signal potential challenges in meeting interest payments from operating profits.
Notably, on Jan 30, 2021, and Oct 31, 2020, the interest coverage ratio turned negative to -82.97 and -83.38 respectively. A negative ratio indicates that the company's operating profits were insufficient to cover its interest expenses, raising concerns about its financial health.
Despite these fluctuations, the interest coverage ratio recovered significantly in the following quarters, with the ratio exceeding 200 in the second half of 2019. This rebound suggests improved profitability and ability to service debt obligations effectively.
Overall, the analysis of Burlington Stores Inc's interest coverage ratio indicates varying levels of financial strength and operational performance in managing interest expenses over the analyzed periods.
Peer comparison
Feb 3, 2024