Apogee Enterprises Inc (APOG)
Interest coverage
| Mar 2, 2024 | Nov 25, 2023 | Aug 26, 2023 | May 27, 2023 | Feb 25, 2023 | Nov 26, 2022 | Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | Jun 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 137,242 | 142,730 | 140,182 | 126,628 | 125,055 | 89,026 | 69,470 | 34,608 | 18,429 | -24,504 | 11,065 | 38,503 | 28,196 | 96,275 | 67,878 | 71,342 | 88,963 | 57,855 | 67,438 | 68,159 |
| Interest expense (ttm) | US$ in thousands | 7,989 | 8,660 | 9,796 | 9,264 | 8,434 | 7,217 | 5,155 | 4,529 | 4,561 | 4,183 | 5,157 | 5,409 | 5,585 | 6,281 | 6,774 | 8,016 | 9,213 | 9,367 | 10,159 | 9,320 |
| Interest coverage | 17.18 | 16.48 | 14.31 | 13.67 | 14.83 | 12.34 | 13.48 | 7.64 | 4.04 | -5.86 | 2.15 | 7.12 | 5.05 | 15.33 | 10.02 | 8.90 | 9.66 | 6.18 | 6.64 | 7.31 |
March 2, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $137,242K ÷ $7,989K
= 17.18
The interest coverage ratio measures a company's ability to meet its interest obligations on its outstanding debt. A higher ratio indicates that the company is more capable of servicing its debt obligations from its operating income.
Analyzing the interest coverage ratio of Apogee Enterprises Inc over the last few quarters shows fluctuations in its ability to cover interest payments. The company's interest coverage ratio has been relatively strong, averaging around 10 to 15 times over the past several quarters.
However, there are instances where the interest coverage ratio dropped significantly, such as in May 2022 and February 2022, when the ratios were at 4.04 and 5.05, respectively. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses, as seen in November 2021 with a negative ratio of -5.86.
Overall, while the company generally maintains a healthy interest coverage ratio, investors and stakeholders should closely monitor any fluctuations and ensure that the company can sustain its ability to meet interest payments in the long run.