Dick’s Sporting Goods Inc (DKS)
Interest coverage
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,282,363 | 1,221,182 | 1,273,702 | 1,422,121 | 1,463,019 | 1,627,436 | 1,721,840 | 1,925,215 | 2,034,503 | 1,849,430 | 1,675,655 | 1,403,459 | 741,477 | 550,188 | 349,720 | 113,366 | 375,612 | 418,710 | 425,951 | 433,475 |
| Interest expense (ttm) | US$ in thousands | 58,023 | 61,762 | 73,511 | 84,621 | 95,220 | 94,135 | 81,793 | 70,100 | 57,839 | 54,287 | 53,267 | 54,148 | 48,812 | 39,599 | 31,108 | 21,976 | 17,012 | 14,845 | 13,173 | 10,673 |
| Interest coverage | 22.10 | 19.77 | 17.33 | 16.81 | 15.36 | 17.29 | 21.05 | 27.46 | 35.18 | 34.07 | 31.46 | 25.92 | 15.19 | 13.89 | 11.24 | 5.16 | 22.08 | 28.21 | 32.34 | 40.61 |
February 3, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,282,363K ÷ $58,023K
= 22.10
The interest coverage ratio of Dick’s Sporting Goods Inc has shown fluctuations over the recent quarters. The trend indicates strong interest coverage ratios, with a peak at 40.61 in May 2019, followed by a decline to a low of 5.16 in May 2020. The ratio has since improved and stood at 22.10 as of February 3, 2024, showcasing the company's ability to cover its interest expenses with operating profits. Overall, the interest coverage ratios demonstrate a history of effective management of interest obligations, although the company experienced a temporary decline in coverage during the challenging economic conditions of mid-2020. Continued monitoring of interest coverage ratios will be essential to assess the company's financial health and ability to service its debt obligations in the future.
Peer comparison
Feb 3, 2024