Chewy Inc (CHWY)
Interest coverage
| Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 198,435 | 134,356 | 107,481 | 51,812 | 21,383 | 57,570 | 59,427 | 54,453 | -18,152 | -53,038 | -92,227 | -72,178 | 12,608 | 12,228 | -3,857 | -90,464 | -172,662 | -219,133 | -269,942 | -252,006 |
| Interest expense (ttm) | US$ in thousands | 5,143 | 4,667 | 4,055 | 3,582 | 3,305 | 3,075 | 2,837 | 2,575 | 2,329 | 1,995 | 1,837 | 1,639 | 2,308 | 1,996 | 2,042 | 2,024 | 1,274 | 1,494 | 952 | 572 |
| Interest coverage | 38.58 | 28.79 | 26.51 | 14.46 | 6.47 | 18.72 | 20.95 | 21.15 | -7.79 | -26.59 | -50.21 | -44.04 | 5.46 | 6.13 | -1.89 | -44.70 | -135.53 | -146.68 | -283.55 | -440.57 |
October 27, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $198,435K ÷ $5,143K
= 38.58
Interest coverage is a financial ratio that indicates a company's ability to pay interest expenses on outstanding debt. A higher interest coverage ratio signifies that a company is more capable of meeting its interest obligations. In the case of Chewy Inc, the interest coverage ratio has fluctuated significantly over the past few quarters.
From Oct 27, 2024, to Feb 2, 2020, Chewy Inc's interest coverage ratio ranged from 38.58 to -440.57, indicating a wide variance in the company's ability to cover its interest payments. The positive ratios suggest that Chewy had sufficient earnings to cover its interest expenses during those periods. However, the negative ratios (such as -7.79 to -440.57) imply that Chewy's earnings were insufficient to cover its interest obligations, potentially raising concerns about its financial health and ability to service its debt.
Overall, the trend in Chewy Inc's interest coverage ratio highlights the importance of monitoring the company's financial performance and debt management strategies to ensure its sustainability and ability to meet its financial commitments.
Peer comparison
Oct 27, 2024