Caleres Inc (CAL)
Interest coverage
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 92,383 | 118,203 | 150,500 | 172,764 | 193,432 | 214,004 | 231,410 | 216,519 | 201,688 | 179,569 | 155,731 | 161,496 | 165,756 | 205,566 | 248,121 | 260,894 | 254,359 | 229,177 | 243,351 | 255,052 |
| Interest expense (ttm) | US$ in thousands | 13,956 | 14,127 | 15,316 | 16,472 | 17,182 | 18,207 | 19,232 | 20,367 | 21,502 | 21,752 | 22,002 | 20,382 | 18,762 | 15,968 | 13,174 | 11,470 | 9,595 | 9,139 | 11,624 | 14,394 |
| Interest coverage | 6.62 | 8.37 | 9.83 | 10.49 | 11.26 | 11.75 | 12.03 | 10.63 | 9.38 | 8.26 | 7.08 | 7.92 | 8.83 | 12.87 | 18.83 | 22.75 | 26.51 | 25.08 | 20.94 | 17.72 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $92,383K ÷ $13,956K
= 6.62
The interest coverage ratio for Caleres Inc has shown fluctuations over the periods analyzed. Starting at 17.72 in January 2022, the ratio improved steadily, reaching its highest point of 26.51 in July 2022. This level indicated a strong ability to cover interest expenses with operating income. However, the ratio declined in the following periods, dropping to 8.83 in January 2023 and further decreasing to 6.62 by January 2025.
The trend observed suggests that Caleres Inc may have faced some challenges in generating enough operating income to cover its interest obligations in the later periods. A declining interest coverage ratio could raise concerns about the company's financial health and its ability to service its debt effectively. It may indicate increasing leverage or declining profitability, which could impact the company's creditworthiness and ability to access financing on favorable terms. Monitoring this ratio closely is essential for understanding the company's financial stability and its capacity to meet its debt service obligations in the long term.
Peer comparison
Jan 31, 2025