Foot Locker Inc (FL)
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 | 112,000 | 27,000 | -463,000 | -402,000 | -385,000 | -417,000 | 101,000 | 128,000 | 142,000 | 259,000 | 317,000 | 401,000 | 500,000 | 527,000 | 610,000 | 672,000 | 730,000 | 703,000 | 812,000 | 783,000 |
| Interest expense (ttm) | US$ in thousands | 8,000 | 8,000 | 8,000 | 7,000 | 8,000 | 10,000 | 12,000 | 11,000 | 10,000 | 8,000 | 6,000 | 8,000 | 10,000 | 13,000 | 16,000 | 18,000 | 21,000 | 22,000 | 21,000 | 20,000 |
| Interest coverage | 14.00 | 3.38 | -57.88 | -57.43 | -48.12 | -41.70 | 8.42 | 11.64 | 14.20 | 32.38 | 52.83 | 50.12 | 50.00 | 40.54 | 38.12 | 37.33 | 34.76 | 31.95 | 38.67 | 39.15 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $112,000K ÷ $8,000K
= 14.00
Foot Locker Inc's interest coverage ratio, which measures the company's ability to cover its interest expenses with its operating income, shows fluctuations over the periods provided. From January 31, 2022, to July 29, 2023, the interest coverage ratio ranged between 30 and 50, indicating a healthy ability to meet interest obligations.
However, starting from October 28, 2023, the interest coverage ratio sharply declined, dropping to negative values in subsequent periods, which raises concerns about Foot Locker's ability to cover its interest expenses with its operating income. Negative interest coverage ratios imply that the company's operating income is insufficient to cover its interest expenses, suggesting financial distress.
It's important for investors and stakeholders to closely monitor Foot Locker's financial performance and leverage levels to assess the company's ability to generate enough income to cover its interest payments and maintain financial stability.
Peer comparison
Jan 31, 2025