Shoe Carnival Inc (SCVL)
Interest coverage
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 97,800 | 96,422 | 96,422 | 98,678 | 147,416 |
| Interest expense | US$ in thousands | 314 | 282 | 282 | 294 | 294 |
| Interest coverage | 311.46 | 341.92 | 341.92 | 335.64 | 501.41 |
January 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $97,800K ÷ $314K
= 311.46
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates that the company is more capable of servicing its debt with its earnings.
In the case of Shoe Carnival Inc, the interest coverage ratio has been consistently high over the past few years. As of January 28, 2023, the interest coverage ratio stood at an impressive 501.41, indicating a strong ability to cover interest payments by operating income. This level of coverage provides a significant cushion for the company to handle its interest expenses.
Subsequently, the interest coverage ratio remained robust throughout the following years, with values of 335.64 in January 31, 2023, 341.92 in both January 31, 2024, and February 3, 2024, and 311.46 in January 31, 2025. These figures suggest that Shoe Carnival Inc has maintained a healthy financial position and has continued to generate sufficient operating income to comfortably cover its interest obligations.
Overall, the consistently high interest coverage ratios for Shoe Carnival Inc indicate a solid financial performance and a strong ability to meet its debt servicing requirements from its operating earnings.
Peer comparison
Jan 31, 2025