Acuity Brands Inc (AYI)
Interest coverage
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 517,800 | 510,800 | 474,600 | 519,800 | 519,400 | 506,900 | 520,900 | 495,700 | 466,700 | 451,200 | 420,400 | 391,100 | 360,100 | 352,500 | 351,100 | 378,500 | 414,800 | 428,600 | 461,300 | 478,100 |
| Interest expense (ttm) | US$ in thousands | 25,300 | 26,400 | 27,900 | 29,600 | 29,900 | 28,700 | 27,000 | 25,000 | 24,800 | 25,300 | 24,200 | 22,900 | 22,600 | 22,500 | 26,400 | 30,900 | 33,900 | 36,200 | 36,400 | 36,600 |
| Interest coverage | 20.47 | 19.35 | 17.01 | 17.56 | 17.37 | 17.66 | 19.29 | 19.83 | 18.82 | 17.83 | 17.37 | 17.08 | 15.93 | 15.67 | 13.30 | 12.25 | 12.24 | 11.84 | 12.67 | 13.06 |
February 29, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $517,800K ÷ $25,300K
= 20.47
The interest coverage ratio of Acuity Brands Inc has shown fluctuation over the period indicated in the table. The ratio, which measures the company's ability to cover its interest expenses with its operating income, has generally been above 15, indicating a comfortable cushion to meet its interest obligations.
The interest coverage ratio peaked at 20.47 in February 2024 and has generally remained above 15 in most periods, reflecting a strong ability to cover interest expenses. The lowest point in the period was 11.84 in February 2020, indicating a weaker ability to cover interest expenses at that time.
Overall, the trend in Acuity Brands Inc's interest coverage ratio suggests a generally healthy financial position with a consistent ability to meet interest payments from its operating income. It is important for stakeholders to continue monitoring this ratio to ensure the company's financial health and stability.
Peer comparison
Feb 29, 2024