Skechers USA Inc (SKX)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 786,386 | 546,670 | 598,187 | 133,684 |
| Interest expense | US$ in thousands | — | 22,400 | 73,169 | 14,900 | 16,327 |
| Interest coverage | — | 35.11 | 7.47 | 40.15 | 8.19 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $—K
= —
The interest coverage ratios of Skechers USA Inc over the years reflect the company's ability to meet its interest payment obligations comfortably. It indicates the extent to which the company's earnings before interest and taxes (EBIT) can cover its interest expenses.
The interest coverage ratio for the fiscal year ending December 31, 2020, was 8.19, suggesting that the company generated earnings 8.19 times greater than its interest expenses that year. This indicates a moderate level of interest coverage.
In the subsequent year, the interest coverage ratio significantly improved to 40.15, indicating a substantial increase in the company's ability to cover its interest expenses from its operating income. This is a positive sign of financial health and stability.
However, the interest coverage ratio for December 31, 2022, dropped to 7.47, suggesting a slight decline in the company's ability to cover its interest obligations compared to the previous year.
By December 31, 2023, the interest coverage ratio improved significantly to 35.11, once again showcasing a strong ability to cover interest expenses and generate substantial earnings relative to such obligations.
Unfortunately, the data for December 31, 2024, is not provided, possibly indicating that the company did not disclose or calculate this ratio for that period.
In summary, while Skechers USA Inc demonstrated varying levels of interest coverage over the years, the ratios generally depict a company that has managed to cover its interest expenses comfortably, with notable improvements in some years. Overall, the company's ability to generate earnings relative to its interest obligations appears favorable based on the information provided.
Peer comparison
Dec 31, 2024