Crocs Inc (CROX)
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 | 1,021,910 | 1,037,620 | 854,666 | 685,496 | 213,721 |
| Interest expense | US$ in thousands | 109,264 | 161,351 | 136,158 | 21,647 | 6,742 |
| Interest coverage | 9.35 | 6.43 | 6.28 | 31.67 | 31.70 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,021,910K ÷ $109,264K
= 9.35
Crocs Inc's interest coverage ratio has shown consistency in 2020 and 2021, with values of 31.70 and 31.67, respectively. This indicates the company's strong ability to cover its interest payments with its earnings. However, there was a significant drop in the interest coverage ratio in 2022 and 2023, where the ratios decreased to 6.28 and 6.43, respectively. This could suggest a decrease in the company's earnings relative to its interest obligations during those years. In 2024, the interest coverage ratio improved to 9.35, but it still remains lower than the levels seen in 2020 and 2021. Overall, it is important for Crocs Inc to closely monitor its interest coverage ratio to ensure it maintains a healthy level of financial stability.
Peer comparison
Dec 31, 2024