Foot Locker Inc (FL)
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 | 37,000 | 142,000 | -399,000 | 651,000 | 581,000 |
| Interest expense | US$ in thousands | 8,000 | 19,000 | 9,000 | 15,000 | 20,000 |
| Interest coverage | 4.62 | 7.47 | -44.33 | 43.40 | 29.05 |
January 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $37,000K ÷ $8,000K
= 4.62
The interest coverage ratio of Foot Locker Inc has fluctuated over the years based on the provided data.
As of January 28, 2023, the interest coverage ratio was relatively robust at 29.05, indicating that the company's operating income was sufficient to cover its interest expenses.
By January 31, 2023, the interest coverage ratio improved further to 43.40, signaling the company's ability to meet its interest obligations comfortably.
However, there was a significant decline in the interest coverage ratio by January 31, 2024, falling to -44.33. A negative ratio suggests that the company's operating income was insufficient to cover its interest expenses, raising concerns about its financial health and solvency.
Despite the negative ratio in the previous year, Foot Locker Inc showed some improvement in its interest coverage by February 3, 2024, with a ratio of 7.47. While still below ideal levels, this increase indicates a positive trend in addressing the company's ability to cover interest payments.
As of January 31, 2025, the interest coverage ratio decreased further to 4.62, indicating that Foot Locker Inc may be facing challenges in generating enough operating income to cover its interest expenses effectively.
In conclusion, Foot Locker Inc has experienced fluctuations in its interest coverage ratio over the years, with periods of strength and weakness. Monitoring this ratio is crucial for assessing the company's financial stability and its ability to meet its debt obligations.
Peer comparison
Jan 31, 2025