Kohl's Corporation (KSS)
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 | 433,000 | 606,000 | 807,000 | 798,000 | 912,000 | 753,000 | 617,000 | 533,000 | 474,000 | 32,000 | -433,000 | -306,000 | -204,000 | 339,000 | 907,000 | 758,000 | 1,008,000 | 1,217,000 | 1,305,000 | 1,641,000 |
| Interest expense (ttm) | US$ in thousands | 319,000 | 281,000 | 287,000 | 290,000 | 243,000 | 296,000 | 250,000 | 245,000 | 245,000 | 234,000 | 234,000 | 231,000 | 231,000 | 230,000 | 230,000 | 217,000 | 246,000 | 199,000 | 229,000 | 190,000 |
| Interest coverage | 1.36 | 2.16 | 2.81 | 2.75 | 3.75 | 2.54 | 2.47 | 2.18 | 1.93 | 0.14 | -1.85 | -1.32 | -0.88 | 1.47 | 3.94 | 3.49 | 4.10 | 6.12 | 5.70 | 8.64 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $433,000K ÷ $319,000K
= 1.36
Based on the provided data, the interest coverage ratio of Kohl's Corporation has shown fluctuations over the reported periods. The interest coverage ratio indicates the company's ability to meet its interest obligations on outstanding debt.
For the period ending January 31, 2022, Kohl's had an interest coverage ratio of 8.64, suggesting that the company's operating income was sufficient to cover its interest expenses approximately 8.64 times. This indicates a healthy ability to meet interest payments.
Subsequently, the interest coverage ratio declined to 5.70 by April 30, 2022, and further decreased to 4.10 by July 31, 2022. These lower ratios may indicate a decrease in profitability or an increase in interest expenses, potentially signaling a strain on the company's ability to cover its interest payments comfortably.
The interest coverage ratio continued to fluctuate over the following periods, demonstrating a range of values from negative figures to positive numbers. Negative interest coverage ratios indicate that the company's operating income was insufficient to cover its interest expenses during those periods.
Overall, it is crucial for investors and stakeholders to monitor Kohl's Corporation's interest coverage ratio regularly to assess the company's financial health and ability to service its debt obligations. Declining ratios or negative values may raise concerns about the company's financial stability and warrant further investigation into its financial management and operational performance.
Peer comparison
Jan 31, 2025