Foot Locker Inc (FL)
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 | 142,000 | 168,000 | 281,000 | 422,000 | 581,000 | 640,000 | 676,000 | 798,000 | 860,000 | 903,000 | 885,000 | 690,000 | 303,000 | 318,000 | 304,000 | 316,000 | 649,000 | 692,000 | 672,000 | 703,000 |
| Interest expense (ttm) | US$ in thousands | 9,000 | 9,000 | 10,000 | 11,000 | 15,000 | 19,000 | 20,000 | 18,000 | 15,000 | 12,000 | 11,000 | 12,000 | 13,000 | 12,000 | 12,000 | 11,000 | 10,000 | 10,000 | 10,000 | 10,000 |
| Interest coverage | 15.78 | 18.67 | 28.10 | 38.36 | 38.73 | 33.68 | 33.80 | 44.33 | 57.33 | 75.25 | 80.45 | 57.50 | 23.31 | 26.50 | 25.33 | 28.73 | 64.90 | 69.20 | 67.20 | 70.30 |
February 3, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $142,000K ÷ $9,000K
= 15.78
The interest coverage ratio for Foot Locker Inc has shown a generally positive trend over the provided periods, indicating the company's ability to meet its interest obligations comfortably. The ratio has consistently been well above 1, which signifies that Foot Locker's earnings before interest and taxes (EBIT) can cover its interest expenses multiple times.
The interest coverage ratio has exhibited significant fluctuations, ranging from a low of 15.78 to a high of 80.45 over the periods analyzed. The highest ratio of 80.45, observed in July 2021, indicates a robust ability to cover interest payments, reflecting strong profitability and operational efficiency.
However, it is worth noting a slight decline in the interest coverage ratio from the peak in July 2021 to the current ratio of 70.30 in February 2019. Despite this decrease, the company continues to maintain a healthy interest coverage ratio well above industry benchmarks, suggesting a stable financial position and lower default risk.
Overall, the consistent positive trend and generally high levels of the interest coverage ratio of Foot Locker Inc indicate a solid financial footing and the company's capacity to meet its interest obligations effectively.
Peer comparison
Feb 3, 2024