ConAgra Foods Inc (CAG)
Interest coverage
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | May 26, 2024 | Feb 29, 2024 | Feb 25, 2024 | Nov 30, 2023 | Nov 26, 2023 | Aug 31, 2023 | Aug 27, 2023 | May 31, 2023 | May 28, 2023 | Feb 28, 2023 | Feb 26, 2023 | Nov 30, 2022 | Nov 27, 2022 | Aug 31, 2022 | Aug 28, 2022 | May 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 816,100 | 53,400 | 70,000 | 213,700 | 1,025,500 | 2,041,200 | 1,855,900 | 1,803,200 | 1,418,100 | 1,039,800 | 1,249,700 | 1,304,900 | 1,705,100 | 2,196,200 | 1,685,900 | 1,167,200 | 1,202,500 | 813,600 | 1,203,700 | 1,565,600 |
| Interest expense (ttm) | US$ in thousands | 423,900 | 441,700 | 440,800 | 442,000 | 448,200 | 443,200 | 441,300 | 440,500 | 435,200 | 435,700 | 433,900 | 432,100 | 424,400 | 410,700 | 404,500 | 397,200 | 393,100 | 395,900 | 393,000 | 390,100 |
| Interest coverage | 1.93 | 0.12 | 0.16 | 0.48 | 2.29 | 4.61 | 4.21 | 4.09 | 3.26 | 2.39 | 2.88 | 3.02 | 4.02 | 5.35 | 4.17 | 2.94 | 3.06 | 2.06 | 3.06 | 4.01 |
February 28, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $816,100K ÷ $423,900K
= 1.93
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.
Analyzing the interest coverage ratios of ConAgra Foods Inc over the specified periods, we observe fluctuations in the company's ability to cover its interest expenses:
- Starting from May 31, 2022, the interest coverage ratio was 4.01, indicating that ConAgra had sufficient earnings to cover its interest payments four times over.
- The ratio decreased to 3.06 by August 28, 2022, and further dropped to 2.06 by August 31, 2022, suggesting a decrease in the company's ability to cover interest expenses.
- However, the ratio improved to 4.17 by February 26, 2023, and continued to increase to 5.35 by February 28, 2023, indicating a stronger ability to cover interest costs during these periods.
- Subsequently, the interest coverage ratio fluctuated between 2.29 to 4.61 from May 26, 2024, to February 29, 2024, showing varying levels of coverage during this period.
Overall, the trend in ConAgra's interest coverage ratios shows some variability, with periods of both improvement and decline in the company's ability to cover interest payments. It is important for investors and stakeholders to monitor these ratios to assess the company's financial health and ability to meet its debt obligations effectively.
Peer comparison
Feb 28, 2025