Core & Main Inc (CNM)
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 | 719,000 | 740,000 | 580,000 | 781,000 | 560,000 |
| Interest expense | US$ in thousands | 142,000 | 81,000 | 81,000 | 66,000 | 66,000 |
| Interest coverage | 5.06 | 9.14 | 7.16 | 11.83 | 8.48 |
January 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $719,000K ÷ $142,000K
= 5.06
Based on the provided data, Core & Main Inc's interest coverage ratio has fluctuated over the past few years.
As of January 29, 2023, the interest coverage ratio was 8.48, indicating that the company generated enough operating income to cover its interest expenses approximately 8.48 times. This suggests a healthy level of financial flexibility.
By January 31, 2023, the interest coverage ratio improved to 11.83, reflecting even stronger ability to meet its interest obligations comfortably.
However, by January 28, 2024, the interest coverage ratio decreased to 7.16, which may indicate a slight decrease in the company's ability to cover its interest expenses from its operating income.
Nonetheless, by January 31, 2024, the ratio rebounded to 9.14, showing an improvement in the company's ability to service its interest payments.
As of January 31, 2025, the interest coverage ratio dropped to 5.06, hinting at a potential decrease in the company's ability to cover interest expenses with its operating income relative to the previous periods.
Overall, while the company has shown fluctuations in its interest coverage ratio over the years, it is essential for Core & Main Inc to maintain a healthy interest coverage ratio to ensure it can comfortably meet its interest obligations and demonstrate financial stability.