PVH Corp (PVH)
Interest coverage
| Feb 28, 2025 | Feb 29, 2024 | Feb 4, 2024 | Feb 28, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 795,500 | 940,300 | 940,300 | 586,300 | 477,800 |
| Interest expense | US$ in thousands | 89,800 | 99,300 | 99,300 | 82,500 | 89,600 |
| Interest coverage | 8.86 | 9.47 | 9.47 | 7.11 | 5.33 |
February 28, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $795,500K ÷ $89,800K
= 8.86
Based on the provided data, the interest coverage ratio of PVH Corp has shown a positive trend over the years. The interest coverage ratio measures the company's ability to meet its interest obligations on outstanding debt.
In January 29, 2023, the interest coverage ratio was 5.33, indicating that the company generated 5.33 times the earnings needed to cover its interest expenses. By February 28, 2025, this ratio had improved to 8.86, demonstrating a stronger ability to cover interest payments with earnings.
This pattern suggests that PVH Corp's financial position has strengthened over the years, as reflected in its improving ability to service its debt obligations. A higher interest coverage ratio is generally seen as a positive indicator of a company's financial health and ability to manage debt effectively. PVH Corp's consistent improvement in this ratio implies a favorable trend in its financial performance and debt management capabilities.
Peer comparison
Feb 28, 2025