Signet Jewelers Ltd (SIG)
Interest coverage
| 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 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 157,000 | -148,900 | -172,700 | -216,300 |
| Interest expense (ttm) | US$ in thousands | -800 | 1,300 | 2,300 | 3,900 | 13,500 | 15,900 | 16,400 | 17,400 | 16,900 | 18,800 | 23,800 | 28,800 | 32,000 | 33,300 | 32,800 | 33,500 | 35,600 | 38,700 | 40,700 | 40,000 |
| Interest coverage | — | 441.62 | 263.70 | 179.67 | 34.42 | 31.26 | 33.97 | 34.38 | 53.33 | 42.11 | 30.49 | 14.26 | -1.80 | -4.05 | -6.33 | -4.19 | 4.41 | -3.85 | -4.24 | -5.41 |
February 3, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $621,500K ÷ $-800K
= —
The interest coverage ratio of Signet Jewelers Ltd has exhibited a volatile trend over the past several periods. The ratio provides an indication of the company's ability to meet its interest obligations with its operating profits.
- In the most recent period, the interest coverage ratio was not available, indicating that either the company did not generate any operating profits or the interest expenses were extremely high.
- Despite the lack of data for the latest period, the previous period (Oct 28, 2023) showed a substantial interest coverage ratio of 441.62, suggesting that Signet Jewelers had a very strong ability to cover its interest expenses with operating profits.
- The earlier periods also displayed varying levels of interest coverage, with ratios ranging from negative values to significantly positive values. This variability may indicate fluctuations in the company's profitability and/or changes in its interest expenses.
- The negative interest coverage ratios in some periods (such as Jan 30, 2021, and Oct 31, 2020) are concerning as they imply that the company's operating profits were insufficient to cover its interest expenses during those periods.
Overall, the trend in Signet Jewelers' interest coverage suggests a mix of strong and weak financial performance in terms of its ability to meet interest obligations. Investors and stakeholders should closely monitor future financial reports to assess the company's financial stability and debt servicing capacity.