Williams-Sonoma Inc (WSM)
Interest coverage
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,244,193 | 1,255,889 | 1,280,445 | 1,374,418 | 1,498,422 | 1,553,207 | 1,543,841 | 1,501,420 | 1,453,116 | 1,330,631 | 1,274,968 | 1,137,229 | 910,697 | 712,296 | 539,583 | 440,387 | 465,874 | 463,041 | 455,534 | 443,535 |
| Interest expense (ttm) | US$ in thousands | -8,833 | -4,683 | -3,300 | 379 | 6,040 | 1,979 | 717 | 412 | 2,121 | 4,296 | 9,519 | 15,944 | 16,231 | 15,334 | 12,554 | 8,759 | 8,853 | 9,119 | 8,843 | 7,758 |
| Interest coverage | — | — | — | 3,626.43 | 248.08 | 784.84 | 2,153.20 | 3,644.22 | 685.11 | 309.74 | 133.94 | 71.33 | 56.11 | 46.45 | 42.98 | 50.28 | 52.62 | 50.78 | 51.51 | 57.17 |
January 28, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,244,193K ÷ $-8,833K
= —
Williams-Sonoma Inc's interest coverage ratio has fluctuated over the past few quarters, indicating the company's ability to cover its interest expenses with its earnings. The interest coverage ratio, which measures the company's ability to meet its interest obligations, was incredibly high in the April 30, 2023, quarter at 3,626.43, suggesting a very strong ability to cover interest payments with operating profits.
The interest coverage ratio experienced significant fluctuations in the preceding quarters, with values ranging from as low as 42.98 to as high as 784.84. This variability may indicate fluctuations in the company's earnings or interest expenses during these periods.
Overall, a high interest coverage ratio such as the one observed in the April 30, 2023, quarter suggests that Williams-Sonoma Inc has a strong earnings base relative to its interest obligations. However, it is essential to monitor this ratio over time to ensure the company's continued ability to meet its debt obligations.