PVH Corp (PVH)

Interest coverage

		Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Feb 4, 2024	Nov 30, 2023	Oct 29, 2023	Aug 31, 2023	Jul 30, 2023	May 31, 2023	Apr 30, 2023	Feb 28, 2023	Jan 29, 2023	Nov 30, 2022	Oct 30, 2022	Aug 31, 2022	Jul 31, 2022	May 31, 2022	May 1, 2022
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	766,900	904,200	1,074,900	1,131,500	1,182,000	1,000,600	785,500	737,500	707,700	834,100	988,000	589,400	175,600	78,900	-42,100	372,500	795,700	817,200	863,000	910,400
Interest expense (ttm)	US$ in thousands	89,800	92,900	93,700	93,100	94,100	96,200	98,300	98,100	99,100	96,900	94,700	93,800	89,600	87,700	85,800	86,500	88,400	90,500	93,600	96,400
Interest coverage		8.54	9.73	11.47	12.15	12.56	10.40	7.99	7.52	7.14	8.61	10.43	6.28	1.96	0.90	-0.49	4.31	9.00	9.03	9.22	9.44

February 28, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $766,900K ÷ $89,800K
= 8.54

PVH Corp's interest coverage ratio, which measures the company's ability to meet its interest payments on outstanding debt, has exhibited fluctuations over the period under consideration. The interest coverage ratio ranged from a peak of 12.56 on February 29, 2024, to a low of -0.49 on November 30, 2022.

A higher interest coverage ratio indicates a stronger ability to cover interest expenses from operating income. PVH Corp's interest coverage ratio exceeded 9 for most of the period, with notable spikes above 10 in May 31, 2023, and February 4, 2024. This suggests a comfortable cushion to handle interest obligations.

However, there were instances where the interest coverage ratio dipped significantly, such as in November 30, 2022, when it turned negative, indicating operating income was insufficient to cover interest expenses. While the ratio improved in subsequent periods, demonstrating some recovery, it is essential for PVH Corp to ensure a consistently healthy interest coverage ratio to sustain financial stability and meet debt obligations effectively.