Caseys General Stores Inc (CASY)

Interest coverage

		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	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	395,467	346,417	357,574	341,559
Interest expense (ttm)	US$ in thousands	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	53,419	53,362	53,463	54,971
Interest coverage		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	7.40	6.49	6.69	6.21

April 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $709,601K ÷ $53,441K
= 13.28

Caseys General Stores Inc's interest coverage ratio has been relatively stable over the past few years, indicating the company's ability to meet its interest obligations comfortably. The interest coverage ratio has gradually increased from around 6.21 in October 2019 to 13.28 in April 2024. This improvement suggests that the company's operating income is more than sufficient to cover its interest expenses.

The consistently high interest coverage ratios above 8.00 demonstrate that Caseys General Stores Inc has a strong financial position and is less vulnerable to interest rate fluctuations or financial distress. The steady increase in the interest coverage ratio over the years implies that the company's profitability and cash flow generation have been improving, enhancing its ability to service its debt.

Overall, the trend in Caseys General Stores Inc's interest coverage ratio reflects a sound financial health and a prudent management of its debt obligations. It indicates that the company has been effectively managing its interest costs and generating enough operating income to cover its interest expenses with a comfortable margin.