Victoria's Secret & Co (VSCO)
Interest coverage
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 239,000 | 487,000 | 870,000 |
| Interest expense | US$ in thousands | 99,000 | 60,000 | 27,000 |
| Interest coverage | 2.41 | 8.12 | 32.22 |
February 3, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $239,000K ÷ $99,000K
= 2.41
The interest coverage ratio for Victoria's Secret & Co has witnessed a significant decline over the past three fiscal years. In February 2024, the interest coverage ratio stood at 2.41, representing a decrease from 8.12 in January 2023 and a substantial drop from 32.22 in January 2022. This downward trend indicates that the company's ability to cover its interest expenses with its operating income has weakened over time. It suggests that Victoria's Secret & Co may be facing increased financial risk due to a lower margin of safety in meeting its interest obligations. Further analysis and monitoring of the company's financial health and capital structure may be warranted to assess the implications of this declining trend in interest coverage.
Peer comparison
Feb 3, 2024