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PLCE (Children's Place) Interest Coverage : 0.78 (As of Jan. 2025)


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What is Children's Place 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. Children's Place's Operating Income for the three months ended in Jan. 2025 was $7 Mil. Children's Place's Interest Expense for the three months ended in Jan. 2025 was $-9 Mil. Children's Place's interest coverage for the quarter that ended in Jan. 2025 was 0.78. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Children's Place Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

PLCE' s Interest Coverage Range Over the Past 10 Years
Min: 0.13   Med: 24.05   Max: 77.54
Current: 0.4


PLCE's Interest Coverage is ranked worse than
96.42% of 727 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.12 vs PLCE: 0.40

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


Children's Place Interest Coverage Historical Data

The historical data trend for Children's Place'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.

Children's Place Interest Coverage Chart

Children's Place Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 14.87 0.13 - 0.40

Children's Place Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - 0.67 2.90 0.78

Competitive Comparison of Children's Place's Interest Coverage

For the Apparel Manufacturing subindustry, Children's Place'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.


Children's Place's Interest Coverage Distribution in the Manufacturing - Apparel & Accessories Industry

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

* The bar in red indicates where Children's Place's Interest Coverage falls into.


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Children's Place 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.

Children's Place's Interest Coverage for the fiscal year that ended in Jan. 2025 is calculated as

Here, for the fiscal year that ended in Jan. 2025, Children's Place's Interest Expense was $-36 Mil. Its Operating Income was $14 Mil. And its Long-Term Debt & Capital Lease Obligation was $273 Mil.

Interest Coverage=-1* Operating Income (A: Jan. 2025 )/Interest Expense (A: Jan. 2025 )
=-1*14.299/-35.794
=0.40

Children's Place's Interest Coverage for the quarter that ended in Jan. 2025 is calculated as

Here, for the three months ended in Jan. 2025, Children's Place's Interest Expense was $-9 Mil. Its Operating Income was $7 Mil. And its Long-Term Debt & Capital Lease Obligation was $273 Mil.

Interest Coverage=-1* Operating Income (Q: Jan. 2025 )/Interest Expense (Q: Jan. 2025 )
=-1*6.805/-8.725
=0.78

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


Children's Place  (NAS:PLCE) 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 .


Children's Place Interest Coverage Related Terms

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


Children's Place Business Description

Traded in Other Exchanges
Address
500 Plaza Drive, Secaucus, NJ, USA, 07094
Children's Place Inc operate an omni-channel children's specialty portfolio of brands in North America. It designs, contract to manufacture, and sell fashionable, high-quality apparel, accessories and footwear predominantly at value prices under proprietary The Children's Place, Place, Baby Place, Gymboree, Sugar & Jade, and PJ Place brand names. The Company classifies its business into two segments: The Children's Place U.S. and The Children's Place International.
Executives
Maegan Markee officer: BRAND PRESIDENT 500 PLAZA DRIVE, SECAUCUS NJ 07094
Alicia Enciso director 1721 VALLEY AVENUE, MCLEAN VA 22101
Jane T Elfers officer: President and CEO C/O THE CHILDRENS PLACE RETAIL STORES, 915 SECAUCUS ROAD, SECAUCUS NJ 07094
Wesley S Mcdonald director
Michael A Shaffer director C/O PHILLIPS-VAN HEUSEN CORPORATION, 200 MADISON AVENUE, NEW YORK NY 10016
Sheamus Toal officer: SVP, CHIEF FINANCIAL OFFICER 450 W. 33RD STREET, 5TH FLOOR, NEW YORK NY 10001
John E. Bachman director 77 EXETER STREET, 1809, BOSTON MA 02116
Joseph A Alutto director 810 CURLEYS COURT, COLUMBUS OH 43235
Jared Shure officer: SVP, GEN COUNSEL & SECRETARY 500 PLAZA DRIVE, THE CHILDREN'S PLACE, SECAUCUS NJ 07094
Elizabeth J Boland director C/O BRIGHT HORIZONS FAMILY SOLUTIONS, 2 WELLS AVENUE, NEWTON MA 02459
Deborah Derby officer: CHIEF ADMINISTRATIVE OFFICER TOYS R US INC, 225 SUMMIT AVE, MONTVALE NJ 07645
Katherine Kountze director 500 PLAZA DRIVE, C/O THE CHILDREN'S PLACE, SECAUCUS NJ 07094
Michael D Rinaldo officer: CHIEF ACCOUNTING OFFICER C/O TIFFANY & CO., 727 FIFTH AVENUE, NEW YORK NY 10022
Leah Swan officer: CHIEF ADMINISTRATIVE OFFICER 500 PLAZA DRIVE, C/O THE CHILDREN'S PLACE, INC., SECAUCUS NJ 07094
Robert F Helm officer: SVP, FINANCE & INV MGMT (CAO) 500 PLAZA DRIVE, THE CHILDREN'S PLACE, SECAUCUS NJ 07094