Caseys General Stores Inc (CASY)
Interest coverage
Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 768,484 | 767,508 | 759,008 | 726,980 | 709,601 | 668,311 | 683,285 | 656,643 | 639,333 | 641,913 | 596,243 | 545,313 | 497,700 | 474,516 | 437,095 | 451,525 | 454,049 | 481,649 | 477,349 | 441,025 |
Interest expense (ttm) | US$ in thousands | 14,067 | 28,561 | 42,707 | 55,013 | 53,441 | 51,747 | 49,298 | 50,494 | 51,815 | 54,306 | 57,040 | 57,058 | 56,972 | 52,850 | 49,888 | 47,002 | 46,679 | 49,316 | 51,056 | 53,105 |
Interest coverage | 54.63 | 26.87 | 17.77 | 13.21 | 13.28 | 12.91 | 13.86 | 13.00 | 12.34 | 11.82 | 10.45 | 9.56 | 8.74 | 8.98 | 8.76 | 9.61 | 9.73 | 9.77 | 9.35 | 8.30 |
April 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $768,484K ÷ $14,067K
= 54.63
The interest coverage ratios for Caseys General Stores Inc., spanning from July 31, 2020, to October 31, 2024, indicate a consistent trend of increasing capacity to cover interest expenses with operating earnings. During this period, the ratio improved from 8.30 in July 2020 to a preliminary value of 17.77 in October 2024. This upward trajectory demonstrates a strengthening ability of the company to meet its debt obligations through its operating income, suggesting enhanced financial stability and decreasing relative risk associated with interest payments.
Notably, the ratio experienced gradual increases over the years, with a significant acceleration observed in the most recent quarters. The ratio rose from approximately 8.30 at the end of July 2020 to over 13 by the end of 2023, and further surged to nearly 17.77 by October 2024. The sharpest increases are observed in the last year, with the ratio nearly doubling and reaching a level of 26.87 by January 2025, and 54.63 projected for April 2025. This indicates that the company's operating income has grown substantially relative to its interest expenses, signaling improved profitability and operational efficiency.
Overall, the increasing trend in the interest coverage ratio reflects positively on the company's ability to service its debt, and suggests a period of improved financial health and lower leverage-related risks. The substantial projected increases in the near future imply stronger earnings capacity and potentially more conservative or reduced interest-related risks.
Peer comparison
Apr 30, 2025