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.