Crocs Inc (CROX)
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 | 1,020,074 | 1,030,462 | 1,033,245 | 1,027,812 | 1,037,623 | 1,052,690 | 1,043,795 | 970,757 | 854,666 | 791,072 | 731,577 | 679,588 | 685,496 | 588,292 | 455,656 | 317,242 | 213,721 | 157,262 | 126,278 | 116,511 |
| Interest expense (ttm) | US$ in thousands | 109,264 | 122,371 | 135,375 | 149,277 | 161,351 | 174,708 | 169,643 | 159,543 | 136,158 | 95,174 | 67,518 | 39,267 | 21,647 | 13,979 | 8,995 | 6,453 | 6,742 | 7,486 | 8,489 | 8,740 |
| Interest coverage | 9.34 | 8.42 | 7.63 | 6.89 | 6.43 | 6.03 | 6.15 | 6.08 | 6.28 | 8.31 | 10.84 | 17.31 | 31.67 | 42.08 | 50.66 | 49.16 | 31.70 | 21.01 | 14.88 | 13.33 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,020,074K ÷ $109,264K
= 9.34
Crocs Inc has shown a strong and improving interest coverage ratio over the years, reflecting the company's ability to meet its interest payment obligations comfortably. The interest coverage ratio, calculated as earnings before interest and taxes (EBIT) divided by the interest expense, increased steadily from 13.33 as of March 31, 2020, to a peak of 50.66 as of June 30, 2021.
However, starting from March 31, 2022, the interest coverage ratio began to decline, indicating a potential decrease in the company's ability to cover its interest expenses with its operating income. This trend continued through the following quarters until December 31, 2024, where the interest coverage ratio stood at 9.34.
The decrease in the interest coverage ratio could be indicative of increased interest expenses or a decline in EBIT. It suggests that Crocs Inc may be experiencing challenges in generating sufficient earnings to cover its interest costs. It would be prudent for stakeholders to monitor this trend closely to ensure the company's financial health and sustainability in the long run.
Peer comparison
Dec 31, 2024