Victoria's Secret & Co (VSCO)
Interest coverage
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 323,690 | 312,000 | 636,120 | 507,120 | 399,120 | 98,120 | -153,000 | -58,000 | 34,000 | 324,000 | 544,000 | 561,000 | 583,000 | 434,000 | 287,000 | 332,000 | 619,000 | 857,000 | 866,000 | 885,000 |
| Interest expense (ttm) | US$ in thousands | 85,000 | 92,000 | 97,000 | 102,305 | 106,305 | 103,272 | 100,272 | 96,472 | 92,472 | 87,505 | 82,505 | 75,000 | 68,000 | 62,000 | 56,000 | 53,000 | 49,765 | 47,765 | 46,682 | 46,682 |
| Interest coverage | 3.81 | 3.39 | 6.56 | 4.96 | 3.75 | 0.95 | -1.53 | -0.60 | 0.37 | 3.70 | 6.59 | 7.48 | 8.57 | 7.00 | 5.12 | 6.26 | 12.44 | 17.94 | 18.55 | 18.96 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $323,690K ÷ $85,000K
= 3.81
Victoria's Secret & Co's interest coverage ratio has experienced fluctuations over the past few years, which indicates varying levels of ability to cover interest expenses with operating income.
The interest coverage ratio was consistently strong throughout 2022, ranging from approximately 12.44 to 18.96, indicating a healthy ability to meet interest obligations. However, there was a notable decline in the ratio starting in October 2022, with values dropping to as low as -1.53 by October 31, 2023, indicating a potential strain on the company's ability to cover interest expenses with operating income.
Although there was a slight improvement in the interest coverage ratio in the following periods, with values ranging from 0.37 to 6.56, the ratio remained relatively low compared to previous years. This suggests that Victoria's Secret & Co may be facing challenges in generating sufficient operating income to comfortably cover its interest expenses.
Overall, the trend in Victoria's Secret & Co's interest coverage ratio indicates a potential need for the company to closely monitor its financial performance and take proactive measures to improve its ability to cover interest expenses effectively in the future.
Peer comparison
Jan 31, 2025