Chewy Inc (CHWY)
Interest coverage
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 157,212 | 51,812 | 51,812 | 55,753 | 54,452 |
| Interest expense | US$ in thousands | 5,519 | 3,582 | 3,582 | 9,291 | 2,574 |
| Interest coverage | 28.49 | 14.46 | 14.46 | 6.00 | 21.15 |
January 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $157,212K ÷ $5,519K
= 28.49
Interest coverage ratio measures the company's ability to pay interest expenses on its debt. A higher ratio indicates that the company is more capable of meeting its interest obligations.
Analyzing Chewy Inc's interest coverage ratio over the specified periods, we observe the following trend:
- As of January 29, 2023, the interest coverage ratio was 21.15, indicating a strong ability to cover interest payments.
- By January 31, 2023, the interest coverage ratio decreased to 6.00, suggesting a potential decrease in the ability to cover interest expenses.
- However, the ratio improved to 14.46 as of January 28, 2024, showing a partial recovery in the company's ability to pay interest.
- Subsequently, the interest coverage ratio remained stable at 14.46 by January 31, 2024, indicating a sustained level of capability in meeting interest obligations.
- Lastly, as of January 31, 2025, the interest coverage ratio surged to 28.49, signifying a significant improvement and a strong ability to cover interest expenses efficiently.
Overall, Chewy Inc's interest coverage ratio has displayed fluctuations over the periods examined, with a notable recovery and improvement towards the last date, reflecting a positive trend in meeting interest payment obligations.
Peer comparison
Jan 31, 2025