Five Below Inc (FIVE)

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	385,571	342,898	347,709	345,126	345,043	306,850	328,365	358,522	379,880	361,912	343,712	290,686	154,803	129,296	117,732	120,619	217,284	88,731	106,468	95,145
Interest expense (ttm)	US$ in thousands	-3,647	-1,497	-1,014	-919	2,965	1,320	11,461	12,437	13,177	13,391	3,427	2,856	2,022	1,636	1,729	2,741	4,285	5,010	5,240	4,807
Interest coverage		—	—	—	—	116.37	232.46	28.65	28.83	28.83	27.03	100.30	101.78	76.56	79.03	68.09	44.01	50.71	17.71	20.32	19.79

February 3, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $385,571K ÷ $-3,647K
= —

The interest coverage ratio of Five Below Inc has shown fluctuation over the provided time period.

In the most recent financial statement reported on Feb 1, 2020, the interest coverage ratio was 50.71, indicating that the company generated profits 50.71 times greater than its interest expenses. This suggests a healthy ability to meet its interest obligations.

The trend continues to be positive in the subsequent periods until Jul 30, 2022, when the interest coverage ratio decreased to 28.65. This drop may indicate a decrease in profitability relative to interest expenses. However, the company managed to maintain a ratio around 28-29 in the following quarters, suggesting continued strength in meeting its interest payments.

In the latest available data, the interest coverage ratio is reported as missing (—). Further analysis would be needed to understand the reasons for this missing data and its implications for the company's financial health.

Overall, while there have been fluctuations in the interest coverage ratio of Five Below Inc, the company generally demonstrates a strong ability to cover its interest expenses and maintain financial stability.