The Chefs Warehouse Inc (CHEF)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 50,667 | 49,933 | 49,577 | 48,965 |
| Interest expense (ttm) | US$ in thousands | 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 | 18,264 | 19,622 | 19,781 | 20,317 |
| Interest coverage | 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 | 2.77 | 2.54 | 2.51 | 2.41 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $100,943K ÷ $45,474K
= 2.22
The interest coverage ratio of The Chefs Warehouse Inc fluctuated over the past few years, reflecting the company's ability to meet its interest obligations. The ratio exceeded 1 in most periods, indicating that the company generated enough operating income to cover its interest expenses.
However, there were some concerning periods where the interest coverage ratio fell below 1, particularly in the third and fourth quarters of 2021. During these periods, the company's operating income was insufficient to cover its interest expenses, raising questions about its financial health and ability to service its debt.
It is also worth noting the significant improvement in the interest coverage ratio in the first three quarters of 2022 compared to the previous year. This could indicate better financial performance and increased profitability, potentially resulting from improved operational efficiency or cost savings initiatives.
Overall, while there have been fluctuations in The Chefs Warehouse Inc's interest coverage ratio, investors should closely monitor these ratios to assess the company's ability to meet its interest obligations and manage its debt effectively.
Peer comparison
Dec 31, 2023