Dick’s Sporting Goods Inc (DKS)
Interest coverage
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,572,020 | 1,282,360 | 1,376,170 | 1,478,970 | 1,463,020 |
| Interest expense | US$ in thousands | 52,987 | 58,023 | 58,023 | 95,220 | 95,220 |
| Interest coverage | 29.67 | 22.10 | 23.72 | 15.53 | 15.36 |
January 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,572,020K ÷ $52,987K
= 29.67
Dick’s Sporting Goods Inc has shown a consistently strong interest coverage ratio over the past few years, indicating the company's ability to comfortably meet its interest obligations. The interest coverage ratio has increased from 15.36 in January 28, 2023, to 29.67 in January 31, 2025. This improvement suggests that the company's earnings before interest and taxes (EBIT) are more than sufficient to cover its interest expenses. A higher interest coverage ratio is usually interpreted positively by investors and creditors as it reflects the company's financial stability and indicates a lower risk of default on its debt obligations. Overall, Dick’s Sporting Goods Inc appears to have a solid financial position in terms of its ability to cover its interest payments.
Peer comparison
Jan 31, 2025