The Cooper Companies Inc. (COO)

Interest coverage ratio is a financial metric used to evaluate a company's ability to meet its interest payments on outstanding debt. The ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense. A higher interest coverage ratio indicates a greater ability to meet interest obligations.

Looking at Cooper Companies, Inc.'s interest coverage ratio over the past five years, we see a fluctuation in the values:
- Oct 31, 2023: 5.06
- Oct 31, 2022: 8.86
- Oct 31, 2021: 21.90
- Oct 31, 2020: 8.47
- Oct 31, 2019: 7.77

The interest coverage has experienced variations over this period, with a peak in 2021 at 21.90, indicating a significant increase in the company's ability to cover its interest payments, and a subsequent decrease in 2023 to 5.06, which suggests a decline in this capacity.

A lower interest coverage ratio can signal that the company may have difficulty meeting its interest obligations from its earnings, which could be a cause for concern for creditors and investors. On the other hand, a higher ratio indicates a stronger ability to meet interest payments comfortably.

It's important to consider the reasons behind the fluctuations in the interest coverage ratio, such as changes in operating income, interest expenses, or the capital structure of the company. Additionally, it's crucial to compare the interest coverage ratio with industry benchmarks and competitors to gain a better understanding of Cooper Companies, Inc.'s financial health and performance in relation to its peers.

In conclusion, while the interest coverage ratio for Cooper Companies, Inc. has shown variability over the past five years, further analysis is necessary to understand the underlying factors driving these fluctuations and to assess the company's overall financial stability.

Peer comparison

Oct 31, 2023