Five Below Inc (FIVE)

Interest coverage

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Feb 3, 2024	Jan 31, 2024	Oct 31, 2023	Oct 28, 2023	Jul 31, 2023	Jul 29, 2023	Apr 30, 2023	Apr 29, 2023	Jan 31, 2023	Jan 28, 2023	Oct 31, 2022	Oct 29, 2022	Jul 31, 2022	Jul 30, 2022	Apr 30, 2022	Jan 31, 2022
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	327,747	345,495	614,543	589,157	569,130	359,282	149,434	175,723	202,012	369,187	536,362	514,884	493,406	323,648	153,890	175,285	279,329	410,894	397,332	397,452
Interest expense (ttm)	US$ in thousands	0	0	3,647	3,647	3,647	3,647	0	3,647	0	2,150	4,300	1,136	5,266	3,211	1,156	910	932	1,342	11,871	22,258
Interest coverage		—	—	168.51	161.55	156.05	98.51	—	48.18	—	171.71	124.74	453.24	93.70	100.79	133.12	192.62	299.71	306.18	33.47	17.86

January 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $327,747K ÷ $0K
= —

The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a better ability to cover interest expenses.

Analyzing the interest coverage ratio of Five Below Inc over the past few quarters, we observe fluctuations in the ratio. In January 2022, the interest coverage ratio was 17.86, indicating that the company was generating enough operating income to cover its interest expenses almost 18 times.

The ratio increased significantly to 453.24 in April 2023, reflecting a substantial improvement in the company's ability to cover interest costs. However, the ratio dipped to 48.18 in October 2023 before increasing again in subsequent quarters.

The data shows varying levels of interest coverage over time, with some quarters showing very high ratios and others dropping to lower levels. It is important for investors and stakeholders to closely monitor this ratio to assess the company's financial health and its ability to meet debt obligations.