American Woodmark Corporation (AMWD)
Interest coverage
| Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 161,394 | 162,921 | 158,860 | 155,378 | 136,352 | 115,621 | 97,021 | 60,549 | 36,159 | 39,328 | 64,389 | 94,923 | 114,738 | 116,582 | 123,190 | 131,565 | 143,892 | 147,009 | 145,586 | 141,694 |
| Interest expense (ttm) | US$ in thousands | 1,044 | 952 | 957 | 962 | 966 | 890 | 919 | 947 | 973 | 1,353 | 1,767 | 2,172 | 2,574 | 2,598 | 2,594 | 2,607 | 2,633 | 2,684 | 2,686 | 2,724 |
| Interest coverage | 154.59 | 171.14 | 166.00 | 161.52 | 141.15 | 129.91 | 105.57 | 63.94 | 37.16 | 29.07 | 36.44 | 43.70 | 44.58 | 44.87 | 47.49 | 50.47 | 54.65 | 54.77 | 54.20 | 52.02 |
April 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $161,394K ÷ $1,044K
= 154.59
The interest coverage ratio of American Woodmark Corporation has shown a fluctuating trend over the periods analyzed. The ratio has generally been above 1, indicating that the company has been able to comfortably cover its interest expenses with its operating income.
In recent periods, there has been an increasing trend in the interest coverage ratio, reaching highs of 154.59 in April 2024 and 171.14 in January 2024. This indicates a strong ability to meet interest obligations with operating income.
However, it is important to note that there have been periods of lower interest coverage ratios, such as in April 2022 and July 2022, where the ratios dropped significantly to 37.16 and 63.94, respectively. These lower ratios suggest a potentially higher risk for the company in meeting its interest payments.
Overall, a higher interest coverage ratio is generally viewed positively by investors and creditors as it indicates a company's ability to meet its debt obligations. Monitoring the trend of the interest coverage ratio over time can provide insights into the financial health and stability of American Woodmark Corporation.