Signet Jewelers Ltd (SIG)
Interest coverage
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 110,700 | 621,500 | 464,700 | 901,300 | -57,700 |
| Interest expense | US$ in thousands | — | — | 13,500 | 16,900 | 32,000 |
| Interest coverage | — | — | 34.42 | 53.33 | -1.80 |
February 1, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $110,700K ÷ $—K
= —
The interest coverage ratio measures a company's ability to meet its interest obligations with its earnings. Signet Jewelers Ltd's interest coverage ratio has fluctuated over the years. As of January 30, 2021, the interest coverage ratio was negative at -1.80, indicating that the company's earnings were insufficient to cover its interest expenses.
However, there has been a significant improvement in the interest coverage ratio since then. As of January 29, 2022, the ratio improved to 53.33, indicating that the company's earnings were more than sufficient to cover its interest expenses. This improvement suggests a healthier financial position and a reduced risk of default on interest payments.
In the following years, the interest coverage ratio remained relatively strong, with ratios of 34.42 as of January 28, 2023. However, there is no data available for February 3, 2024, and February 1, 2025.
Overall, the trend in Signet Jewelers Ltd's interest coverage ratio shows variability, with a significant improvement in recent years. However, it is important to monitor future financial performance to ensure the company maintains a healthy interest coverage ratio to meet its debt obligations.