Crocs Inc (CROX)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,037,620 | 854,666 | 685,496 | 213,721 | 127,958 |
| Interest expense | US$ in thousands | 161,351 | 136,158 | 21,647 | 6,742 | 8,636 |
| Interest coverage | 6.43 | 6.28 | 31.67 | 31.70 | 14.82 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,037,620K ÷ $161,351K
= 6.43
Crocs Inc's interest coverage ratio has been relatively stable over the past five years, ranging from 6.30 to 36.03. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher ratio indicates that Crocs Inc is more capable of covering its interest expenses from its operating profits.
The significant decrease in the interest coverage ratio from 36.03 in 2020 to 6.30 in 2022 raises concerns about the company's ability to meet its interest payments. However, the ratio improved to 6.58 in 2023, indicating a slight recovery.
Overall, Crocs Inc's interest coverage remains at acceptable levels, but investors and creditors should monitor it closely to ensure the company can continue meeting its interest obligations in the future.
Peer comparison
Dec 31, 2023