Capri Holdings Ltd (CPRI)
Interest coverage
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 387,000 | 822,000 | 994,000 | 46,000 |
| Interest expense | US$ in thousands | — | 6,000 | 24,000 | 18,000 | 43,000 |
| Interest coverage | — | 64.50 | 34.25 | 55.22 | 1.07 |
March 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $—K
= —
Interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt. A higher ratio indicates a stronger ability to cover interest costs. Looking at the data provided for Capri Holdings Ltd, we can see a significant improvement in its interest coverage over the years.
As of March 31, 2021, the interest coverage ratio was quite low at 1.07, indicating a minimal ability to cover interest expenses with its operating income. However, there was a substantial improvement in the following years, with the ratio increasing to 55.22 by March 31, 2022, 34.25 by March 31, 2023, and further to 64.50 by March 31, 2024. These sharp increases indicate a significant enhancement in the company's ability to meet its interest obligations comfortably.
Unfortunately, the data for March 31, 2025, is missing, indicated by "\u2014." Without this data point, it is challenging to assess the current interest coverage ratio and its trend. It would be crucial for stakeholders to monitor this ratio closely to ensure the company continues to maintain a healthy level of interest coverage to meet its financial obligations effectively.
Peer comparison
Mar 31, 2025