Cal-Maine Foods Inc (CALM)

Cal-Maine Foods Inc's interest coverage ratio has fluctuated over the past five years. In June 2024, the interest coverage ratio was notably high at 659.61, reflecting the company's strong ability to cover its interest expense with its earnings before interest and taxes. This indicates a healthy financial position and suggests that the company has a substantial buffer to meet its interest obligations.

The interest coverage ratio was also very high in June 2023 at 1,715.99, which further demonstrates the company's ability to generate earnings more than sufficient to cover its interest expenses. This high ratio provides a positive signal to creditors and investors regarding the company's financial stability and capacity to meet its debt obligations.

In May 2022, the interest coverage ratio decreased to 413.47, indicating a slight decrease in the company's ability to cover its interest payments compared to the previous year. However, this ratio still suggests a strong ability to service its debt from operating income.

On the contrary, in May 2021, the interest coverage ratio fell into negative territory at -45.71, indicating that the company's earnings before interest and taxes were insufficient to cover its interest expenses during that period. This could raise concerns about the company's financial health and ability to meet its debt obligations.

Similarly, in May 2020, the interest coverage ratio was low at 41.41, indicating a lower ability to cover interest expenses compared to the earlier years. While still positive, this ratio suggests a relatively tighter financial position for the company during that period.

Overall, the trend in Cal-Maine Foods Inc's interest coverage ratio shows fluctuations over the years, with some periods demonstrating exceptionally strong ability to cover interest expenses and others indicating a need for closer monitoring of the company's financial performance and debt servicing capabilities.