Skechers USA Inc (SKX)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 904,257 | 869,046 | 848,805 | 860,007 | 784,786 | 741,130 | 657,918 | 594,343 | 546,670 | 553,095 | 569,371 | 616,423 | 598,187 | 562,844 | 508,723 | 252,793 | 139,935 | 176,298 | 231,588 | 397,389 |
| Interest expense (ttm) | US$ in thousands | 0 | 5,600 | 11,300 | 17,300 | 37,218 | 73,390 | 82,759 | 77,260 | 73,169 | 51,574 | 39,853 | 42,769 | 31,055 | 15,777 | 17,072 | 18,459 | 16,345 | 13,761 | 11,130 | 8,231 |
| Interest coverage | — | 155.19 | 75.12 | 49.71 | 21.09 | 10.10 | 7.95 | 7.69 | 7.47 | 10.72 | 14.29 | 14.41 | 19.26 | 35.67 | 29.80 | 13.69 | 8.56 | 12.81 | 20.81 | 48.28 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $904,257K ÷ $0K
= —
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest payments.
Looking at the data provided for Skechers USA Inc, we can see that the interest coverage ratio has fluctuated over the period. As of December 31, 2024, the interest coverage ratio is not available (indicated as "—"), which may imply that the company did not generate sufficient operating income to cover its interest expenses for that period.
Prior to this, the interest coverage ratio varied significantly over the years, ranging from a high of 155.19 on September 30, 2024, to a low of 7.47 on December 31, 2022. This indicates that Skechers USA Inc had a significant improvement in its ability to cover interest payments in the third quarter of 2024 but faced challenges in the past, especially in the latter part of 2022.
Overall, the trend in the interest coverage ratio for Skechers USA Inc reflects fluctuations in the company's financial performance and its ability to generate sufficient income to cover its interest expenses. It would be important for stakeholders to monitor this ratio closely to ensure the company's financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2024