Guess? Inc. (GES)
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 | 85,321 | 154,270 | 300,835 | 367,716 | 418,764 | 346,032 | 260,344 | 173,940 | 120,748 | 147,228 | 190,339 | 255,398 | 302,147 | 250,876 | 189,159 | 170,017 | 257,782 | 307,354 | 335,759 | 354,319 |
| Interest expense (ttm) | US$ in thousands | 30,067 | 28,145 | 25,947 | 24,163 | 23,712 | 23,521 | 23,330 | 21,625 | 19,920 | 17,627 | 15,334 | 14,569 | 13,804 | 13,550 | 13,296 | 12,936 | 15,016 | 17,354 | 19,709 | 22,166 |
| Interest coverage | 2.84 | 5.48 | 11.59 | 15.22 | 17.66 | 14.71 | 11.16 | 8.04 | 6.06 | 8.35 | 12.41 | 17.53 | 21.89 | 18.51 | 14.23 | 13.14 | 17.17 | 17.71 | 17.04 | 15.98 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $85,321K ÷ $30,067K
= 2.84
The interest coverage ratio reflects the ability of Guess? Inc. to meet its interest obligations with its operating income. Looking at the historical trend of the interest coverage ratio over the past few years, we observe fluctuations in the company's ability to cover its interest expenses.
In the most recent period, as of January 31, 2025, the interest coverage ratio has decreased to 2.84, indicating a decline in the company's ability to cover its interest payments with its operating income. This may raise concerns about Guess? Inc.'s financial health and ability to service its debt obligations.
It is important to note that the interest coverage ratio has fluctuated over the historical period provided in the data. While the ratio reached its peak at 21.89 on January 31, 2023, it has shown a downward trend since then, with significant drops in the subsequent periods.
The decreasing trend in the interest coverage ratio may suggest that Guess? Inc. is experiencing challenges in generating sufficient operating income to meet its interest expenses. Investors and creditors may view this trend as a potential risk factor, indicating the need for the company to closely monitor its financial performance and debt management strategies.