Apogee Enterprises Inc (APOG)
Interest coverage
| Feb 28, 2025 | Mar 2, 2024 | Feb 29, 2024 | Feb 28, 2023 | Feb 25, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 118,733 | 137,242 | 137,242 | 125,055 | 125,055 |
| Interest expense | US$ in thousands | 6,159 | 7,989 | 6,669 | 7,660 | 8,434 |
| Interest coverage | 19.28 | 17.18 | 20.58 | 16.33 | 14.83 |
February 28, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $118,733K ÷ $6,159K
= 19.28
The interest coverage ratio measures the ability of a company to meet its interest obligations with its earnings before interest and taxes (EBIT). Analyzing the interest coverage trend of Apogee Enterprises Inc over the years provides valuable insights into its financial health.
- As of February 25, 2023, the interest coverage ratio stood at 14.83, indicating that the company generated 14.83 times the EBIT needed to cover its interest expenses.
- By February 28, 2023, the ratio improved to 16.33, suggesting a stronger ability to meet interest payments.
- The ratio continued to increase to 20.58 by February 29, 2024, reflecting a significant improvement in the company's ability to cover its interest charges.
- However, by March 2, 2024, the interest coverage ratio decreased slightly to 17.18, although still at a healthy level, indicating a dip in the company's ability to cover interest expenses compared to the previous period.
- As of February 28, 2025, the ratio rebounded to 19.28, showing a recovery in the company's ability to service its interest obligations.
Overall, the trend in Apogee Enterprises Inc's interest coverage ratio indicates a generally healthy financial position with a consistent ability to meet its interest payments. The fluctuations observed over the years suggest some variability in the company's earnings relative to its interest expenses, but the ratios generally demonstrate a strong capacity to honor its debt obligations.