Ross Stores Inc (ROST)
Interest coverage
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,545,880 | 2,068,020 | 2,333,680 | 194,312 | 2,174,000 |
| Interest expense | US$ in thousands | 74,095 | 80,526 | 75,137 | 88,015 | 9,707 |
| Interest coverage | 34.36 | 25.68 | 31.06 | 2.21 | 223.96 |
February 3, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,545,880K ÷ $74,095K
= 34.36
The interest coverage ratio for Ross Stores Inc has experienced fluctuations over the past five fiscal years. The ratio stood at 34.36 in February 3, 2024, indicating a strong ability to cover interest expenses with operating income. This is an improvement compared to the previous year, where the ratio was 25.68 on January 28, 2023.
In January 29, 2022, the interest coverage ratio was 31.06, also showing a healthy coverage of interest payments. However, there was a significant decrease in financial health in January 30, 2021, with an interest coverage ratio of 2.21, suggesting that operating income was only sufficient to cover interest expenses just over two times.
The most notable result was seen on February 1, 2020, with a very high interest coverage ratio of 223.96, indicating an extremely strong ability to cover interest payments.
Overall, Ross Stores Inc has demonstrated varying levels of interest coverage over the past five years, with a generally strong ability to meet its interest obligations, although there has been some fluctuation in recent years.
Peer comparison
Feb 3, 2024