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Capri Holdings (NYSE:CPRI) Interest Coverage

: 9.75 (As of Jun. 2023)
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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. Capri Holdings's Operating Income for the three months ended in Jun. 2023 was $78 Mil. Capri Holdings's Interest Expense for the three months ended in Jun. 2023 was $-8 Mil. Capri Holdings's interest coverage for the quarter that ended in Jun. 2023 was 9.75. The higher the ratio, the stronger the company's financial strength is.

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

CPRI' s Interest Coverage Range Over the Past 10 Years
Min: 8.53   Med: 40.18   Max: 6289
Current: 18.92


CPRI's Interest Coverage is ranked better than
65.54% of 772 companies
in the Retail - Cyclical industry
Industry Median: 8.27 vs CPRI: 18.92

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


Capri Holdings Interest Coverage Historical Data

The historical data trend for Capri Holdings'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.

* Premium members only.

Capri Holdings Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.16 31.00 8.53 N/A 34.88

Capri Holdings Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only N/A 53.20 20.17 8.64 9.75

Competitive Comparison

For the Luxury Goods subindustry, Capri Holdings'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.

   

Capri Holdings Interest Coverage Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Capri Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Capri Holdings's Interest Coverage falls into.



Capri Holdings 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.


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

Capri Holdings's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Capri Holdings's Interest Expense was $-24 Mil. Its Operating Income was $837 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,170 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2023 )/Interest Expense (A: Mar. 2023 )
=-1*837/-24
=34.88

Capri Holdings's Interest Coverage for the quarter that ended in Jun. 2023 is calculated as

Here, for the three months ended in Jun. 2023, Capri Holdings's Interest Expense was $-8 Mil. Its Operating Income was $78 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,278 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2023 )/Interest Expense (Q: Jun. 2023 )
=-1*78/-8
=9.75

* 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.


Capri Holdings  (NYSE:CPRI) 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 .


Capri Holdings Interest Coverage Related Terms

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


Capri Holdings (NYSE:CPRI) Business Description

Capri Holdings logo
Traded in Other Exchanges
Address
90 Whitfield Street, 2nd Floor, London, GBR, W1T 4EZ
Michael Kors, Versace, and Jimmy Choo are the brands of Capri Holdings, a marketer, distributor, and retailer of upscale accessories and apparel. Michael Kors, Capri's largest brand, offers handbags, footwear, and apparel through more than 800 company-owned stores, wholesale, and e-commerce. Versace (acquired in 2018) is known for its ready-to-wear luxury fashion, while Jimmy Choo (acquired in 2017) is best known for women's luxury footwear. John Idol has served as CEO since 2003.
Executives
Cedric Wilmotte officer: CEO - Michael Kors C/O CAPRI HOLDINGS LIMITED, 90 WHITFIELD STREET, 2ND FLOOR, LONDON X0 W1T 4EZ
Mahesh Madhavan director C/O CAPRI HOLDINGS LIMITED, 90 WHITFIELD STREET, 2ND FLOOR, LONDON X0 W1T 4EZ
Joshua Schulman officer: CEO - Michael Kors 603 WEST 50TH STREET, NEW YORK X1 10019
Marilyn C Crouther director 1902 RESTON METRO PLAZA, RESTON VA 20190
Jenna Hendricks officer: SVP, Chief People Officer 33 KINGSWAY, LONDON X0 WC2B 6UF
Daniel Purefoy officer: SVP, Global Ops 33 KINGSWAY, LONDON X0 WC2B 6UF
Ann Mclaughlin Korologos director PO BOX 3599, BATTLECREEK MI 49016-3599
Freestone Robin Anthony David director 33 KINGSWAY, LONDON X0 WC2B 6UF
Jean Tomlin director C/O MICHAEL KORS (USA), INC., 11 WEST 42ND STREET, NEW YORK NY 10036
Thomas Jr. Edwards officer: EVP, CFO, COO & Treasurer 6820 LBJ FREEWAY, DALLAS TX 75240
Krista A Mcdonough officer: SVP, General Counsel 33 KINGSWAY, LONDON X0 WC2B 6UF
Cathy Marie Robinson officer: SVP, Corp Str & Ch Ops Off C/O MICHAEL KORS (USA), INC., 11 WEST 42ND STREET, NEW YORK NY 10036
Michael David Kors director, officer: Hon Chair & Chief Creative Off C/O MICHAEL KORS (USA), INC., 11 WEST 42ND STREET, ATTN. LEE SPORN, NEW YORK NY 10036
Jane A. Thompson director C/O MICHAEL KORS (USA), INC., 11 WEST 42ND STREET, NEW YORK NY 10036
John D Idol director, officer: Chairman & CEO 650 MADISON AVE, NEW YORK NY 10022