American Woodmark Corporation (AMWD)

The interest coverage ratio of American Woodmark Corporation has exhibited significant variability across the specified periods. As of April 30, 2021, the ratio stood at 4.49, indicating that the company's earnings before interest and taxes (EBIT) were approximately 4.5 times the interest expenses, reflecting a comfortable ability to meet interest obligations. However, this ratio declined sharply to -3.22 as of April 30, 2022, suggesting that the company's EBIT was insufficient to cover interest expenses, resulting in a negative coverage ratio and indicating difficulties in meeting interest obligations during that period.

Subsequently, the ratio improved markedly to 8.43 by April 30, 2023, implying a substantial recovery in earnings capacity with EBIT comfortably exceeding interest expenses. This positive trend continued, with the interest coverage ratio rising to 19.52 on April 30, 2024, which demonstrates a strong buffer of earnings over interest obligations, and further maintained at a high level of 14.01 as of April 30, 2025.

Overall, the data indicates that American Woodmark experienced a period of financial challenge in 2022, reflected by a negative interest coverage ratio, but subsequent years have seen a significant improvement, with the company demonstrating strong capacity to service its interest expenses in recent periods. This pattern underscores the importance of analyzing underlying earnings fluctuations and financial stability in assessing the company's long-term debt service viability.