The Chefs Warehouse Inc (CHEF)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 23, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 128,207 | 119,907 | 113,574 | 105,047 | 100,943 | 92,553 | 89,079 | 91,373 | 85,738 | 71,814 | 60,178 | 37,203 | 10,811 | -53,298 | -75,662 | -105,730 | -102,660 | -35,995 | -13,446 | 27,493 |
| Interest expense (ttm) | US$ in thousands | 48,675 | 48,760 | 48,396 | 48,712 | 45,474 | 57,673 | 57,031 | 49,490 | 43,849 | 23,792 | 17,246 | 17,189 | 17,587 | 18,706 | 19,221 | 20,585 | 20,946 | 19,953 | 19,764 | 18,837 |
| Interest coverage | 2.63 | 2.46 | 2.35 | 2.16 | 2.22 | 1.60 | 1.56 | 1.85 | 1.96 | 3.02 | 3.49 | 2.16 | 0.61 | -2.85 | -3.94 | -5.14 | -4.90 | -1.80 | -0.68 | 1.46 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $128,207K ÷ $48,675K
= 2.63
The interest coverage ratio of The Chefs Warehouse Inc provides insights into the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a better ability to cover interest expenses from operating income.
Analyzing the data provided:
- The interest coverage ratio in the first quarter of 2020 was 1.46, suggesting the company generated just enough EBIT to cover its interest expenses.
- In the subsequent quarters of 2020, the interest coverage ratio turned negative, indicating that the company's EBIT was insufficient to cover interest expenses, raising concerns about its financial health.
- Throughout 2021, the interest coverage ratio remained negative, reflecting continued challenges in meeting interest obligations with operating income.
- From the first quarter of 2022 onwards, the interest coverage ratio began to improve, indicating a better ability to cover interest expenses with EBIT.
- By the end of 2024, the interest coverage ratio had stabilized around 2.6, suggesting a stronger financial position and improved ability to meet interest obligations.
Overall, the trend in The Chefs Warehouse Inc's interest coverage ratio shows a period of financial strain followed by a gradual improvement in its ability to cover interest expenses with operating income, indicating a potentially more stable financial position in recent periods.
Peer comparison
Dec 31, 2024