Guess? Inc. (GES)

Guess? Inc.'s interest coverage ratio measures the company's ability to meet its interest payment obligations with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a stronger ability to cover interest expenses.

Based on the data provided, Guess? Inc. has shown a fluctuating trend in its interest coverage ratio over the past five years. In the most recent financial year ending on February 3, 2024, the interest coverage ratio was 11.25, indicating that the company generated earnings 11.25 times higher than its interest expenses. This suggests a solid ability to meet interest obligations.

In comparison, the interest coverage ratio was higher in the previous two fiscal years, with values of 15.11 and 11.65 as of January 28, 2023, and January 29, 2022, respectively. These higher ratios indicate even stronger ability to cover interest payments during those periods.

However, there was a significant decrease in the interest coverage ratio in the fiscal year ending on January 30, 2021, where the ratio stood at -2.83. This negative ratio implies that the company's EBIT was insufficient to cover its interest expenses during that period, raising concerns about its financial stability.

In the fiscal year ending on February 1, 2020, the interest coverage ratio improved to 8.35, indicating a better ability to cover interest payments compared to the previous year but not as strong as the latest fiscal year.

Overall, while Guess? Inc. has shown fluctuations in its interest coverage ratio, it is important for investors and stakeholders to closely monitor this ratio to assess the company's ability to meet its debt obligations in a timely manner and avoid potential financial distress.