Signet Jewelers Ltd (SIG)
Interest coverage
| Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 110,700 | 374,400 | 378,500 | 569,600 | 621,500 | 574,100 | 606,500 | 700,700 | 464,700 | 497,000 | 557,100 | 598,200 | 901,300 | 791,700 | 725,600 | 410,600 | -57,700 | -134,900 | -207,500 | -140,200 |
| Interest expense (ttm) | US$ in thousands | 0 | 0 | 2,600 | 4,400 | 9,600 | 11,700 | 12,700 | 14,300 | 13,500 | 15,900 | 16,400 | 17,400 | 16,900 | 18,800 | 23,800 | 28,800 | 32,000 | 33,300 | 32,800 | 33,500 |
| Interest coverage | — | — | 145.58 | 129.45 | 64.74 | 49.07 | 47.76 | 49.00 | 34.42 | 31.26 | 33.97 | 34.38 | 53.33 | 42.11 | 30.49 | 14.26 | -1.80 | -4.05 | -6.33 | -4.19 |
February 1, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $110,700K ÷ $0K
= —
Signet Jewelers Ltd's interest coverage ratio has shown significant fluctuations over the period from May 2, 2020, to February 1, 2025. The interest coverage ratio indicates the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
The company experienced negative interest coverage ratios in the earlier periods, indicating that its earnings were insufficient to cover the interest expenses. This suggests a higher financial risk as the company struggled to meet its interest obligations from its operational earnings.
However, from May 1, 2021, onwards, Signet Jewelers Ltd's interest coverage ratio exhibited a positive trend, with ratios well above 1. This indicates improvement in the company's ability to cover its interest payments from its operating profits.
The sharp increase in interest coverage ratio from 2022 onwards, reaching a peak of 145.58 in August 3, 2024, suggests a significant improvement in the company's financial position. This indicates that Signet Jewelers Ltd's earnings are substantially higher than its interest expenses, reflecting a stronger financial health and lower risk of default.
The absence of data for November 2, 2024, and February 1, 2025, complicates the analysis for the most recent periods. However, the overall trend indicates an improving financial performance in terms of interest coverage for Signet Jewelers Ltd. It is vital for investors and stakeholders to continue monitoring the company's interest coverage ratio to assess its financial stability and ability to meet debt obligations.