Capri Holdings Ltd (CPRI)
Interest coverage
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -641,000 | -597,000 | 140,000 | 285,000 | 370,000 | 415,000 | 531,000 | 671,000 | 826,000 | 909,000 | 1,012,000 | 976,000 | 1,000,000 | 696,000 | 536,000 | 461,000 | 46,000 | -358,000 | -333,000 | -300,000 |
| Interest expense (ttm) | US$ in thousands | 36,000 | 42,000 | 21,000 | 14,000 | 18,000 | 23,000 | 34,000 | 36,000 | 32,000 | 28,000 | 23,000 | 23,000 | 20,000 | 17,000 | 20,000 | 27,000 | 43,000 | 45,000 | 38,000 | 29,000 |
| Interest coverage | -17.81 | -14.21 | 6.67 | 20.36 | 20.56 | 18.04 | 15.62 | 18.64 | 25.81 | 32.46 | 44.00 | 42.43 | 50.00 | 40.94 | 26.80 | 17.07 | 1.07 | -7.96 | -8.76 | -10.34 |
March 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-641,000K ÷ $36,000K
= -17.81
Capri Holdings Ltd's interest coverage ratio has exhibited significant fluctuations over the past few years. The interest coverage ratio was negative for the periods up until March 31, 2021, indicating that the company did not generate enough operating income to cover its interest expenses.
However, there has been a notable improvement in the interest coverage ratio from June 30, 2021, onwards, reaching its peak at 50.00 on March 31, 2022. This signifies that the company's operating income became substantially higher compared to its interest expenses during this period.
Subsequently, the interest coverage ratio has shown some fluctuations but has remained positive, indicating that Capri Holdings Ltd has been able to comfortably cover its interest obligations using its operating income.
The decrease in the interest coverage ratio from June 30, 2022, to December 31, 2024, accompanied by negative ratios in the latter periods, suggests a potential strain on the company's ability to cover its interest expenses with its operating income during those specific quarters.
Overall, Capri Holdings Ltd's interest coverage ratio presents a mixed picture, with both positive and negative trends observed over the analyzed time frame. It is important for investors and stakeholders to closely monitor this ratio to assess the company's ability to meet its debt obligations using its operating profits.
Peer comparison
Mar 31, 2025