PVH Corp (PVH)

Interest coverage

Feb 4, 2024 Oct 29, 2023 Jul 30, 2023 Apr 30, 2023 Jan 29, 2023 Oct 30, 2022 Jul 31, 2022 May 1, 2022 Jan 30, 2022 Oct 31, 2021 Aug 1, 2021 May 2, 2021 Jan 31, 2021 Nov 1, 2020 Aug 2, 2020 May 3, 2020 Feb 2, 2020 Nov 3, 2019 Aug 4, 2019 May 5, 2019
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 940,300 879,100 435,500 468,400 477,800 402,600 992,800 1,094,400 1,081,600 885,400 630,200 349,300 -1,066,100 -1,187,300 -1,039,400 -787,100 566,200 794,900 807,400 789,000
Interest expense (ttm) US$ in thousands 99,300 99,200 96,000 91,900 89,600 90,800 95,600 101,100 108,600 119,600 128,100 133,500 125,500 121,100 115,900 111,500 120,000 119,300 120,400 122,400
Interest coverage 9.47 8.86 4.54 5.10 5.33 4.43 10.38 10.82 9.96 7.40 4.92 2.62 -8.49 -9.80 -8.97 -7.06 4.72 6.66 6.71 6.45

February 4, 2024 calculation

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

The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates that a company is more capable of meeting its interest obligations.

In the case of PVH Corp, the interest coverage ratios have fluctuated over the periods provided in the table. The ratios have ranged from negative values to positive values, indicating varying levels of ability to cover interest expenses.

The trend in PVH Corp's interest coverage ratios shows some inconsistency. There are periods where the ratios are comfortably above 1, such as in Feb 2024 and Oct 29, 2023, implying a higher level of financial stability and ability to cover interest payments.

However, there are also periods, like Aug 1, 2021, Jan 31, 2021, and Nov 1, 2020, where the ratios are below 1, suggesting that PVH Corp may have struggled to cover its interest expenses during those times.

Overall, a thorough analysis of the interest coverage ratios for PVH Corp indicates variability in the company's ability to cover its interest payments, highlighting the importance of closely monitoring its financial performance and leverage levels.