Urban Outfitters Inc (URBN)

Interest coverage

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	510,842	428,349	408,636	395,599	336,898	294,821	167,955	73,609	52,999	71,975	156,515	234,941	263,108	248,637	280,493	233,734	6,918	135,249	35,751	-30,740
Interest expense (ttm)	US$ in thousands	0	7,131	7,375	7,619	8,638	26,317	31,092	33,110	34,080	10,702	5,683	3,421	1,432	3,405	3,405	3,405	3,405	0	0	0
Interest coverage		—	60.07	55.41	51.92	39.00	11.20	5.40	2.22	1.56	6.73	27.54	68.68	183.73	73.02	82.38	68.64	2.03	—	—	—

January 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $510,842K ÷ $0K
= —

Urban Outfitters Inc's interest coverage ratio experienced fluctuations over the period from April 30, 2020, to January 31, 2025. The interest coverage ratio stood at "—", indicating that the company did not have enough operating income to cover its interest expenses in the initial periods.

However, as of January 31, 2021, there was a notable improvement in the interest coverage ratio, reaching 2.03. This suggested that the company's operating income was able to cover its interest expenses approximately two times over.

Subsequently, the interest coverage ratio demonstrated a significant increase, reaching 183.73 as of January 31, 2022. This substantial improvement signified the company's enhanced ability to meet its interest obligations with a much stronger operating income.

Following this peak, the interest coverage ratio declined but remained relatively healthy between April 30, 2022, and October 31, 2024, varying between 6.73 and 60.07. This indicated that Urban Outfitters Inc continued to have sufficient operating income to cover its interest expenses during this period.

As of January 31, 2025, the interest coverage ratio reverted to the "—" mark, suggesting a potential decrease in the company's ability to cover its interest payments with its operating income. Analysts should monitor future financial statements to track any changes in Urban Outfitters Inc's interest coverage and assess its financial health.