Birkenstock Holding (MEX:BIRK) Interest Coverage : 6.75 (As of Mar. 2025)

View and export this data going back to 2024. Start your Free Trial

What is Birkenstock Holding Interest Coverage?

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. Birkenstock Holding's Operating Income for the three months ended in Mar. 2025 was MXN3,821 Mil. Birkenstock Holding's Interest Expense for the three months ended in Mar. 2025 was MXN-566 Mil. Birkenstock Holding's interest coverage for the quarter that ended in Mar. 2025 was 6.75. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Birkenstock Holding's Interest Coverage or its related term are showing as below:

MEX:BIRK' s Interest Coverage Range Over the Past 10 Years
Min: 2.41 Med: 3.25 Max: 5.33
Current: 5.33

MEX:BIRK's Interest Coverage is ranked better than
51.66% of 724 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.015 vs MEX:BIRK: 5.33

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Birkenstock Holding Interest Coverage Historical Data

The historical data trend for Birkenstock Holding'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.

* Premium members only.

Birkenstock Holding Interest Coverage Chart

Birkenstock Holding Annual Data

Trend

Sep20

Sep21

Sep22

Sep23

Sep24

Interest Coverage

2.65

3.84

2.41

4.06

Birkenstock Holding Quarterly Data
	Sep20	Sep21	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25
Interest Coverage	Get a 7-Day Free Trial									5.04	3.58	166.74	3.07	6.75

Competitive Comparison of Birkenstock Holding's Interest Coverage

For the Footwear & Accessories subindustry, Birkenstock Holding'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.

Birkenstock Holding's Interest Coverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Birkenstock Holding's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Birkenstock Holding's Interest Coverage falls into.

Save Embed

;

Save Embed

;

Birkenstock Holding 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Birkenstock Holding's Interest Coverage for the fiscal year that ended in Sep. 2024 is calculated as

Here, for the fiscal year that ended in Sep. 2024, Birkenstock Holding's Interest Expense was MXN-2,373 Mil. Its Operating Income was MXN9,631 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN28,072 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2024 )	/	Interest Expense (A: Sep. 2024 )
	=	-1	*	9631.485	/	-2373.151
	=	4.06

Birkenstock Holding's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Birkenstock Holding's Interest Expense was MXN-566 Mil. Its Operating Income was MXN3,821 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN28,543 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2025 )	/	Interest Expense (Q: Mar. 2025 )
	=	-1	*	3820.773	/	-566.46
	=	6.75

The higher the ratio, the stronger the company's Financial Strength is.

Birkenstock Holding (MEX:BIRK) 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 .

Birkenstock Holding Interest Coverage Related Terms

Thank you for viewing the detailed overview of Birkenstock Holding's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Birkenstock Holding Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Birkenstock Holding PLC (MEX:BIRK) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

BIRK:USA 7PV:Germany

Address

1-2 Berkeley Square, London, GBR, W1J 6EA

Website

https://www.birkenstock-holding.com

Birkenstock Holding PLC is a company that manufactures and sells footbed-based products, including sandals, closed-toe silhouettes, and other products, such as skincare and accessories, for everyday, leisure, and work. It sells its products through two main channels: business-to-business (B2B) which comprises sales made to established third-party store networks, and direct-to-consumer (DTC) which comprises sales made on globally owned online stores through the Birkenstock.com domain and sales made in Birkenstock retail stores. The company's reportable segments are based on its regional hubs and include: the Americas which is also its key revenue-generating segment; Europe; and Australia, Japan, India, China, and the United Arab Emirates (APMA).