Columbia Sportswear Company (COLM)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	—	310,284	429,504	450,504	137,049
Interest expense	US$ in thousands	—	—	2,713	1,007	2,474
Interest coverage		—	—	158.31	447.37	55.40

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $—K
= —

To analyze Columbia Sportswear Company's interest coverage over the past few years, we see that the interest coverage ratio has varied significantly.

- In December 31, 2020, the interest coverage ratio was 55.40, indicating that the company generated 55.40 times the earnings needed to cover its interest expenses. This suggests a strong ability to meet its interest obligations.

- By December 31, 2021, the interest coverage ratio improved significantly to 447.37, showing a substantial increase in earning power relative to interest expenses. This indicates a robust financial position and the company's ability to comfortably service its debt.

- In December 31, 2022, the interest coverage ratio remained healthy at 158.31, although lower than the previous year. This still indicates a strong ability to cover interest payments with earnings.

- The absence of data for December 31, 2023 and 2024 makes it challenging to evaluate the company's interest coverage in those years. It is important for investors and stakeholders to consider the reasons for missing data in their analysis.

Overall, Columbia Sportswear Company appears to have maintained a solid interest coverage ratio in the years with available data, which is a positive indicator of its financial health and ability to meet its debt obligations.