Dick’s Sporting Goods Inc (DKS)
Interest coverage
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,282,360 | 1,463,020 | 2,034,500 | 741,477 | 375,613 |
| Interest expense | US$ in thousands | 58,023 | 95,220 | 57,839 | 48,812 | 17,012 |
| Interest coverage | 22.10 | 15.36 | 35.18 | 15.19 | 22.08 |
February 3, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,282,360K ÷ $58,023K
= 22.10
The interest coverage ratio for Dick’s Sporting Goods Inc has exhibited variability over the past five years, ranging from a low of 15.19 in January 2021 to a high of 35.18 in January 2022. This ratio measures the company's ability to cover its interest expenses with its operating income.
A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations from its earnings. In this case, the significant increase in the interest coverage ratio from 15.19 in 2021 to 35.18 in 2022 suggests improved financial health and increased profitability.
However, the ratio decreased to 15.36 in January 2023 before rebounding to 22.10 in February 2024. While the ratio has fluctuated, it has generally remained above 15, indicating that Dick’s Sporting Goods Inc has consistently generated sufficient operating income to cover its interest expenses.
Overall, the company's interest coverage ratio has shown resilience and financial stability over the past five years, with periods of both improvement and moderation in its ability to service its interest payments.
Peer comparison
Feb 3, 2024