Ollie's Bargain Outlet Hldg (OLLI)

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 260,605 270,534 316,492 290,874 273,446 228,329 183,212 182,682 182,152 198,869 214,028 205,021 196,014 143,305 92,154 79,767 107,687 148,594 165,605 178,673
Interest expense (ttm) US$ in thousands 0 60 4,692 4,692 4,761 4,701 138 2,813 2,813 4,898 4,893 3,084 3,079 1,117 1,117 360 394 335 341 296
Interest coverage — 4,508.90 67.45 61.99 57.43 48.57 1,327.62 64.94 64.75 40.60 43.74 66.48 63.66 128.29 82.50 221.58 273.32 443.56 485.65 603.62

January 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $260,605K ÷ $0K
= —

The interest coverage ratio of Ollie's Bargain Outlet Holdings has shown significant fluctuations over the periods provided. Initially, the interest coverage was quite high, above 400, indicating a strong ability to cover interest expenses with operating profits. However, by October 31, 2022, the interest coverage dropped substantially to 82.50, implying a potential strain on the company's ability to cover interest obligations from its earnings.

Subsequently, the interest coverage ratio continued to decline, reaching a low of 1,327.62 by October 31, 2023, before rebounding slightly to 4,508.90 by October 31, 2024. The significant increase in interest coverage in October 2024 is noteworthy and suggests an improved ability to cover interest expenses from operating profits.

It is important to note that the interest coverage ratio for January 31, 2025, is not available (indicated as "—"), making it difficult to assess the most recent financial position of the company in terms of its ability to cover interest payments. Monitoring this ratio over time is crucial to understand Ollie's Bargain Outlet Holdings' financial health and its capacity to meet its debt obligations.