Kohl's Corporation (KSS)

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 433,000 717,000 717,000 246,000 246,000
Interest expense US$ in thousands 319,000 144,000 344,000 304,000 140,000
Interest coverage 1.36 4.98 2.08 0.81 1.76

January 31, 2025 calculation

Interest coverage = EBIT ÷ Interest expense
= $433,000K ÷ $319,000K
= 1.36

Based on the data provided, Kohl's Corporation's interest coverage ratio has fluctuated over the years. The interest coverage ratio is a measure of a company's ability to meet its interest obligations with its operating income.

As of January 28, 2023, the interest coverage ratio was 1.76, indicating that Kohl's operating income was able to cover its interest expenses approximately 1.76 times. This suggests a relatively tight margin of safety, as the company's income may only just cover its interest payments.

By January 31, 2024, the interest coverage ratio had improved to 2.08, showing a better ability to meet interest obligations. This improvement continued into February 3, 2024, with a significant increase in the ratio to 4.98, indicating a strong ability to cover interest expenses with operating income.

However, by January 31, 2025, the interest coverage ratio dropped to 1.36, signaling a decline in the company's ability to cover its interest payments. A lower interest coverage ratio could potentially indicate increased financial risk for Kohl's Corporation, as it may struggle to meet its interest obligations with its current level of operating income.

Overall, fluctuations in the interest coverage ratio suggest varying levels of financial health and risk for Kohl's Corporation over the years covered by the data. It is important for investors and stakeholders to monitor this ratio to assess the company's ability to manage its debt and interest costs effectively.


Peer comparison

Jan 31, 2025

Company name
Symbol
Interest coverage
Kohl's Corporation
KSS
1.36
Burlington Stores Inc
BURL
220.17
Macy’s Inc
M
8.28