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.
Peer comparison
Feb 4, 2024