Kohls Corp (KSS)
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 | 717,000 | 116,000 | 159,000 | 262,000 | 246,000 | 998,000 | 1,185,000 | 1,489,000 | 1,680,000 | 1,546,000 | 1,181,000 | 729,000 | -262,000 | -177,000 | 5,000 | 263,000 | 1,099,000 | 1,139,000 | 1,193,000 | 1,269,000 |
| Interest expense (ttm) | US$ in thousands | 144,000 | 144,000 | 144,000 | 144,000 | 140,000 | 134,000 | 127,000 | 118,000 | 111,000 | 151,000 | 200,000 | 251,000 | 284,000 | 264,000 | 238,000 | 213,000 | 207,000 | 215,000 | 226,000 | 238,000 |
| Interest coverage | 4.98 | 0.81 | 1.10 | 1.82 | 1.76 | 7.45 | 9.33 | 12.62 | 15.14 | 10.24 | 5.90 | 2.90 | -0.92 | -0.67 | 0.02 | 1.23 | 5.31 | 5.30 | 5.28 | 5.33 |
February 3, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $717,000K ÷ $144,000K
= 4.98
The interest coverage ratio for Kohls Corp fluctuated over the periods provided. In general, a higher interest coverage ratio indicates a company's ability to meet its interest obligations from operating earnings.
From May 2, 2020, to Jul 30, 2022, Kohls Corp showed a consistently strong interest coverage ratio, with values ranging from 5.31 to 15.14. This suggests the company had sufficient earnings to cover its interest expenses comfortably during these periods.
However, there was a decline in interest coverage from Oct 30, 2022, to Oct 31, 2023, where the ratios dropped below 2. This indicates a deteriorating ability to cover interest payments from operating profits during these periods.
The negative interest coverage ratios from Jan 30, 2021, to Oct 31, 2021, and again from Jan 28, 2023, to Oct 28, 2023, are concerning, as they imply that Kohls Corp's operating earnings were insufficient to cover its interest expenses during these specific time frames.
Overall, there were periods of strength and weakness in Kohls Corp's interest coverage ratio, highlighting the importance of monitoring the company's financial health and its ability to generate enough earnings to meet its interest obligations.
Peer comparison
Feb 3, 2024