Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. The Cato's
Operating Income
for the
three
months ended in Jan. 2024 was $-13.8 Mil. The Cato's Interest Expense for the
three
months ended in Jan. 2024 was $-0.0 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for The Cato's Interest Coverage or its related term are showing as below:
CATO's Interest Coverage is not ranked *
in the Retail - Cyclical industry.
Industry Median: 7.85 * Ranked among companies with meaningful Interest Coverage only.
The historical data trend for The Cato's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Apparel Retail subindustry, The Cato's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Cato Interest Coverage Distribution
For the Retail - Cyclical industry and Consumer Cyclical sector, The Cato's Interest Coverage distribution charts can be found below:
* The bar in red indicates where The Cato's Interest Coverage falls into.
The Cato Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
The Cato did not have earnings to cover the interest expense.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Cato (NYSE:CATO) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
The Cato Interest Coverage Related Terms
Thank you for viewing the detailed overview of The Cato's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
The Cato Corp operates as a specialty retailer of fashion apparel and accessories primarily in the southeastern United States. Its primary objective is to be the fashion specialty retailer for fashion and value in its markets. The company operates through the following business segments: Retail and Credit. The Retail segment which generates majority revenue offers fashion specialty stores. The Credit segment involves credit card services.
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