Columbia Sportswear Company (COLM)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	133,420	271,494	293,507	292,581	304,327	358,057	368,764	402,265	429,504	449,268	437,468	463,690	450,504	362,629	314,346	209,986	137,519	152,859	219,696	305,426
Interest expense (ttm)	US$ in thousands	0	4,133	4,133	7,639	11,772	8,693	9,458	6,451	2,713	1,967	1,398	1,497	1,380	1,365	1,449	1,656	3,191	3,830	4,949	6,715
Interest coverage		—	65.69	71.02	38.30	25.85	41.19	38.99	62.36	158.31	228.40	312.92	309.75	326.45	265.66	216.94	126.80	43.10	39.91	44.39	45.48

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $133,420K ÷ $0K
= —

The interest coverage ratio of Columbia Sportswear Company has displayed significant fluctuations over the periods reported.

From March 31, 2020, to June 30, 2021, the interest coverage ratio consistently increased from 45.48 to 216.94, indicating the company's strong ability to cover its interest expenses with operating income. This improvement suggests a positive financial performance and enhanced financial stability during this period.

However, from September 30, 2021, to December 31, 2024, the interest coverage ratio experienced a downward trend, dropping to 25.85 by the end of December 2023. This decline could potentially raise concerns about the company's ability to meet its interest obligations with its earnings during this period.

The ratio increased slightly to 71.02 by June 30, 2024, showing a partial recovery. Nonetheless, it remained below the previous highs recorded, indicating that Columbia Sportswear Company might still face challenges in fully covering its interest payments with its operating profits.

The sudden absence of data for December 31, 2024 might hint towards a potential change in the company's financial reporting practices or an anomaly in the data collection process. This presents uncertainties around the interest coverage ratio for that specific period.

In conclusion, the fluctuating interest coverage ratios of Columbia Sportswear Company over the reported periods reflect varying levels of financial strength and operational performance, suggesting the need for close monitoring of the company's financial health and interest payment capabilities.