Core & Main Inc (CNM)
Interest coverage
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 580,000 | 560,000 | 315,000 |
| Interest expense | US$ in thousands | 81,000 | 66,000 | 98,000 |
| Interest coverage | 7.16 | 8.48 | 3.21 |
January 28, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $580,000K ÷ $81,000K
= 7.16
Core & Main Inc's interest coverage ratio has demonstrated variability over the past three years. In January 2024, the interest coverage ratio stood at 7.16, indicating that the company generated over 7 times the amount of earnings needed to cover its interest expense. This represents a decline from the previous year, where the interest coverage ratio was 8.48 in January 2023, suggesting a slightly stronger ability to cover interest payments. However, in January 2022, the interest coverage ratio was lower at 3.21, reflecting a significant decrease in the company's ability to pay interest expenses compared to the two subsequent years.
Overall, the trend in Core & Main Inc's interest coverage ratio shows some fluctuation, which could be attributed to changes in the company's financial performance and interest expense management. It is important for stakeholders to monitor this ratio closely to assess the company's ability to service its debt obligations effectively.