Ollie's Bargain Outlet Hldg (OLLI)

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	227,799	197,841	188,304	152,312	130,918	120,674	121,355	150,516	204,592	231,849	259,421	305,741	277,500	257,378	235,326	174,051	171,855	169,185	162,741	166,853
Interest expense (ttm)	US$ in thousands	267	271	266	261	256	256	256	256	256	256	256	256	256	256	256	256	296	347	404	461
Interest coverage		853.18	730.04	707.91	583.57	511.40	471.38	474.04	587.95	799.19	905.66	1,013.36	1,194.30	1,083.98	1,005.38	919.24	679.89	580.59	487.56	402.82	361.94

February 3, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $227,799K ÷ $267K
= 853.18

Ollie's Bargain Outlet Hldg has shown a consistently strong interest coverage ratio over the periods provided in the table. The interest coverage ratio measures the company's ability to pay its interest expenses on outstanding debt with its earnings before interest and taxes (EBIT).

The interest coverage ratio for Ollie's Bargain Outlet Hldg has been significantly high, ranging from 361.94 to 1,194.30 across the periods listed. A high interest coverage ratio indicates that the company has more than enough EBIT to cover its interest obligations, reflecting a lower financial risk.

It is noteworthy that the interest coverage ratio has shown some fluctuations over time, with the highest ratio recorded in January 2021 and the lowest in May 2019. However, even the lowest ratio of 361.94 is still considered healthy and indicates a strong ability to meet interest payments.

Overall, Ollie's Bargain Outlet Hldg's interest coverage ratio demonstrates a robust financial position with ample earnings to cover its interest expenses, suggesting a low probability of defaulting on its debt obligations.