PVH Corp (PVH)

Interest coverage

		Feb 4, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	940,300	477,800	1,081,600	-1,066,100	566,200
Interest expense	US$ in thousands	99,300	89,600	108,600	125,500	120,000
Interest coverage		9.47	5.33	9.96	-8.49	4.72

February 4, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $940,300K ÷ $99,300K
= 9.47

The interest coverage ratio for PVH Corp has shown fluctuations over the past five years. In 2024, the ratio stands at 9.47, indicating that the company's operating income is sufficient to cover its interest expenses approximately 9.47 times. This represents an improvement compared to the previous year, where the ratio was 5.33.

In 2022, the interest coverage ratio was 9.96, demonstrating a strong ability to cover interest payments. However, in 2021, the ratio was negative at -8.49, indicating that the company's operating income was not sufficient to cover its interest expenses during that period.

The ratio improved in 2020 to 4.72, showing the company's ability to cover its interest payments improved compared to 2021 but was still lower than the ratios in 2022 and 2024. Overall, fluctuations in the interest coverage ratio suggest varying levels of financial risk and profitability for PVH Corp over the past years.