Torrid Holdings (Torrid Holdings) Interest Coverage : 0.40 (As of Jan. 2024)

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What is Torrid Holdings 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. Torrid Holdings's Operating Income for the three months ended in Jan. 2024 was $4 Mil. Torrid Holdings's Interest Expense for the three months ended in Jan. 2024 was $-10 Mil. Torrid Holdings's interest coverage for the quarter that ended in Jan. 2024 was 0.40. The higher the ratio, the stronger the company's financial strength is.

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

CURV' s Interest Coverage Range Over the Past 10 Years
Min: 1.45 Med: 3.03 Max: 98.5
Current: 1.45

CURV's Interest Coverage is ranked worse than
85.94% of 754 companies
in the Retail - Cyclical industry
Industry Median: 7.83 vs CURV: 1.45

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

Torrid Holdings Interest Coverage Historical Data

The historical data trend for Torrid 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.

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.

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Torrid Holdings Interest Coverage Chart

Torrid Holdings Annual Data

Trend

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Interest Coverage

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4.67

2.66

1.54

3.39

1.46

Torrid Holdings Quarterly Data
	Jan19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Interest Coverage	Get a 7-Day Free Trial													0.30	2.74	2.10	0.69	0.40

Competitive Comparison of Torrid Holdings's Interest Coverage

For the Apparel Retail subindustry, Torrid 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.

Torrid Holdings's Interest Coverage Distribution in the Retail - Cyclical Industry

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

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

Torrid 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 ⁽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.

Torrid Holdings's Interest Coverage for the fiscal year that ended in Jan. 2024 is calculated as

Here, for the fiscal year that ended in Jan. 2024, Torrid Holdings's Interest Expense was $-39 Mil. Its Operating Income was $57 Mil. And its Long-Term Debt & Capital Lease Obligation was $445 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jan. 2024 )	/	Interest Expense (A: Jan. 2024 )
	=	-1	*	57.148	/	-39.203
	=	1.46

Torrid Holdings's Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the three months ended in Jan. 2024, Torrid Holdings's Interest Expense was $-10 Mil. Its Operating Income was $4 Mil. And its Long-Term Debt & Capital Lease Obligation was $445 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jan. 2024 )	/	Interest Expense (Q: Jan. 2024 )
	=	-1	*	4.015	/	-10.134
	=	0.40

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

Torrid Holdings (NYSE:CURV) 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 .

Torrid Holdings Interest Coverage Related Terms

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

Torrid Holdings (Torrid Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Torrid Holdings Inc (NYSE:CURV) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

18501 East San Jose Avenue, City of Industry, CA, USA, 91748

Website

https://www.torrid.com

Torrid Holdings Inc is a direct-to-consumer brand of apparel, intimates and accessories in North America targeting the 25- to 40-year old woman. It is focused on fit and offers high quality products across a broad assortment that includes tops, bottoms, denim, dresses, intimates, activewear, footwear and accessories. The company has one reportable segment, which includes the operation of e-Commerce platform and stores.

Executives

Valeria Rico Nikolov	director	C/O TORRID HOLDINGS INC., 18501 EAST SAN JOSE AVENUE, CITY OF INDUSTRY CA 91748
Mark Mizicko	officer: Chief Commercial Officer	18305 E. SAN JOSE AVE., CITY OF INDUSTRY CA 91748
Paula Dempsey	officer: See Remarks	18501 EAST SAN JOSE AVENUE, CITY OF INDUSTRY CA 91748
Theo Killion	director	C/O TOMMY HILFIGER U.S.A., INC., 25 W. 39TH STREET, NEW YORK NY 10018
Bridgett C. Zeterberg	officer: See Remarks	18501 E. SAN JOSE AVENUE, CITY OF INDUSTRY CA 91748
Timothy O Martin	officer: See Remarks	AMGEN INC, ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320-1799
Michael A Shaffer	director	C/O PHILLIPS-VAN HEUSEN CORPORATION, 200 MADISON AVENUE, NEW YORK NY 10016
Chinwe Abaelu	officer: See Remarks	C/O TORRID INC., 18501 E. SAN JOSE AVE., CITY OF INDUSTRY CA 91748
Tanner Macdiarmid	officer: See Remarks	C/O TORRID INC., 18501 E. SAN JOSE AVE., CITY OF INDUSTRY CA 91748
Kelly Mcguire Diehl	officer: See Remarks	C/O TORRID INC., 18501 E. SAN JOSE AVE., CITY OF INDUSTRY CA 91748
Anne Stephenson	officer: See Remarks	C/O TORRID INC., 18501 E. SAN JOSE AVE., CITY OF INDUSTRY CA 91748
Elizabeth Munoz	director, officer: Chief Executive Officer	C/O TORRID INC., 18501 E. SAN JOSE AVE., CITY OF INDUSTRY CA 91748
Michael Robert Salmon	officer: Chief Operating Officer	C/O TORRID INC., 18501 E. SAN JOSE AVE., CITY OF INDUSTRY CA 91748
George Wehlitz	officer: Chief Financial Officer	C/O TORRID HOLDINGS, 18501 EAST SAN JOSE AVENUE, CITY OF INDUSTRY CA 91748
Sycamore Partners Torrid, L.l.c.	10 percent owner	9 W. 57TH STREET, 31ST FLOOR, NEW YORK NY 10019