The Cooper Companies, Inc. Common Stock (COO)
Interest coverage
| Oct 31, 2024 | Jul 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 699,700 | 634,000 | 587,100 | 519,900 | 518,200 | 480,700 | 469,500 | 552,300 | 532,600 | 564,000 | 529,200 | 497,200 | 514,600 | 488,400 | 460,900 | 340,200 | 303,300 | 346,100 | 417,700 | 542,500 |
| Interest expense (ttm) | US$ in thousands | 114,300 | 113,600 | 111,900 | 109,100 | 105,300 | 101,800 | 92,100 | 76,800 | 57,300 | 39,500 | 28,000 | 23,300 | 23,100 | 24,800 | 24,900 | 31,600 | 36,800 | 44,800 | 55,800 | 61,500 |
| Interest coverage | 6.12 | 5.58 | 5.25 | 4.77 | 4.92 | 4.72 | 5.10 | 7.19 | 9.29 | 14.28 | 18.90 | 21.34 | 22.28 | 19.69 | 18.51 | 10.77 | 8.24 | 7.73 | 7.49 | 8.82 |
October 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $699,700K ÷ $114,300K
= 6.12
The interest coverage ratio for The Cooper Companies, Inc. Common Stock has shown fluctuations over the periods analyzed. The ratio indicates the company's ability to meet its interest obligations from its operating income. A higher interest coverage ratio suggests that the company is more capable of covering its interest expenses.
In the most recent period of October 31, 2024, the interest coverage ratio was 6.12, which indicates that the company's operating income was 6.12 times higher than its interest expenses during that period. This suggests a reasonable level of financial health in terms of servicing its debt.
The trend in the interest coverage ratio shows a general decline from a high of 22.28 on October 31, 2021, to the recent level of 6.12 on October 31, 2024. The decreasing trend may raise concerns about the company's ability to cover its interest payments from its operating income effectively.
It is essential for stakeholders to closely monitor this ratio, as a sustained decline in the interest coverage ratio may indicate potential financial distress or liquidity issues for The Cooper Companies, Inc. Common Stock. Further investigation into the reasons behind the decline in the ratio and the company's overall financial health would be advisable.
Peer comparison
Oct 31, 2024