Victoria's Secret & Co (VSCO)
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 | ||
|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 240,000 | 230,000 | 344,000 | 417,000 | 487,000 | 575,000 | 637,000 | 740,000 |
| Interest expense (ttm) | US$ in thousands | 99,000 | 91,000 | 80,000 | 69,000 | 59,000 | 51,000 | 48,000 | 38,000 |
| Interest coverage | 2.42 | 2.53 | 4.30 | 6.04 | 8.25 | 11.27 | 13.27 | 19.47 |
February 3, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $240,000K ÷ $99,000K
= 2.42
Victoria's Secret & Co's interest coverage has shown a positive trend over the past eight quarters, starting at 2.42 in February 3, 2024, and consistently increasing to reach 19.47 in April 30, 2022. This indicates the company's ability to comfortably service its interest payments on debt obligations. The steady improvement in interest coverage reflects a healthier financial position, as higher ratios suggest that Victoria's Secret & Co is generating more than enough operating income to cover its interest expenses. Overall, the company's interest coverage ratio has strengthened significantly, highlighting its improving financial stability and ability to meet its financial obligations.
Peer comparison
Feb 3, 2024