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