Williams-Sonoma Inc (WSM)
Interest coverage
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,244,190 | 1,498,420 | 1,453,120 | 910,697 | 465,874 |
| Interest expense | US$ in thousands | 29,162 | 2,260 | 1,865 | 16,231 | 8,853 |
| Interest coverage | 42.66 | 663.02 | 779.15 | 56.11 | 52.62 |
January 28, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,244,190K ÷ $29,162K
= 42.66
Williams-Sonoma Inc's interest coverage ratio has fluctuated significantly over the past five years. In January 2024, the interest coverage ratio stood at 42.66, indicating the company's ability to cover its interest expenses 42.66 times over. This represents a substantial decline compared to the previous year, where the ratio was exceptionally high at 663.02, suggesting an improved ability to meet interest obligations. The trend continues to fluctuate as in 2022 and 2021 the interest coverage ratios were 779.15 and 56.11, respectively. This indicates a strong ability to cover interest payments in 2022 followed by a decrease in 2021. In 2020, the interest coverage ratio was 52.62, showing a slight decrease compared to the current year. Overall, the variations in the interest coverage ratio of Williams-Sonoma Inc over the past five years suggest changes in the company's ability to meet its interest obligations, demonstrating a mix of strengths and weaknesses in managing its debt.