Crocs Inc (CROX)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 127,958 | 106,413 | 80,521 | 70,933 |
| Interest expense (ttm) | US$ in thousands | 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 | 8,636 | 7,327 | 4,948 | 2,659 |
| Interest coverage | 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 | 14.82 | 14.52 | 16.27 | 26.68 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,037,623K ÷ $161,351K
= 6.43
Crocs Inc's interest coverage ratio has shown a declining trend from Q2 2022 to Q3 2023. The ratio has decreased from 8.33 in Q3 2022 to 6.07 in Q3 2023. Despite this slight decline, the interest coverage ratio remains above 1, indicating that the company's earnings before interest and taxes (EBIT) are sufficient to cover its interest expenses.
The lowest interest coverage ratio of 6.07 was observed in Q3 2023, which may suggest a slight increase in the company's financial risk as it indicates a smaller buffer between its EBIT and interest expenses. However, it is important to note that a ratio above 1 still indicates that Croc Inc's operating income is comfortably exceeding its interest expenses.
The peak interest coverage ratio of 17.62 in Q1 2022 indicates that Crocs Inc was able to cover its interest expenses almost eighteen times over with its EBIT during that period, reflecting a strong financial position.
Overall, although there has been a downward trend in the interest coverage ratio over the observed periods, Crocs Inc still demonstrates a healthy ability to meet its interest obligations with its operating income.
Peer comparison
Dec 31, 2023