Caleres Inc (CAL)
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 | 194,455 | 189,573 | 179,002 | 197,719 | 214,327 | 232,290 | 259,761 | 254,133 | 205,808 | 106,601 | 45,354 | -41,578 | -485,659 | -424,611 | -401,211 | -339,267 | 103,813 | 3,707 | -16 | -5,677 |
| Interest expense (ttm) | US$ in thousands | 19,342 | 20,617 | 20,132 | 17,588 | 14,264 | 11,014 | 12,080 | 21,437 | 30,930 | 43,343 | 49,155 | 50,601 | 48,287 | 41,581 | 41,259 | 35,261 | 33,123 | 32,070 | 25,721 | 21,934 |
| Interest coverage | 10.05 | 9.19 | 8.89 | 11.24 | 15.03 | 21.09 | 21.50 | 11.85 | 6.65 | 2.46 | 0.92 | -0.82 | -10.06 | -10.21 | -9.72 | -9.62 | 3.13 | 0.12 | -0.00 | -0.26 |
February 3, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $194,455K ÷ $19,342K
= 10.05
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
Looking at the data for Caleres Inc, the interest coverage ratio has fluctuated significantly over the past few quarters. For the most recent period, ending February 3, 2024, the interest coverage ratio was 10.05, indicating that the company's operating income was 10.05 times higher than its interest expenses during that period.
Over the past few quarters, Caleres Inc's interest coverage ratio has generally been above 1, which is typically considered the minimum threshold for a healthy interest coverage. However, there have been some periods, such as the 2nd and 3rd quarters of 2021, where the interest coverage ratio dipped below 1, implying that the company's operating income was insufficient to cover its interest costs during those periods.
The trend in the interest coverage ratio for Caleres Inc suggests that the company has experienced fluctuations in its ability to cover its interest expenses with its operating income. It is important for stakeholders to monitor this ratio closely, as a sustained decline in the interest coverage ratio could indicate potential financial difficulties for the company in meeting its debt obligations.
Peer comparison
Feb 3, 2024