The Cooper Companies Inc. (COO)
Interest coverage
| 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 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 545,500 | 537,700 | 507,200 |
| Interest expense (ttm) | US$ in thousands | 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 | 68,100 | 76,200 | 82,300 |
| Interest coverage | 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 | 8.01 | 7.06 | 6.16 |
January 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $519,900K ÷ $109,100K
= 4.77
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
Analyzing Cooper Companies, Inc.'s interest coverage ratio over the past eight quarters, we observe a general decreasing trend from Q2 2022 to Q1 2024. The interest coverage ratio has declined from 17.60 in Q2 2022 to 4.92 in Q1 2024.
The gradual decrease in the interest coverage ratio may raise concerns about the company's ability to cover its interest expenses in the long run. A declining interest coverage ratio could indicate a higher financial risk for the company, as it might struggle to meet its debt obligations.
Further investigation into Cooper Companies, Inc.'s financial health, cash flow, and overall debt levels would be necessary to fully evaluate the implications of the decreasing interest coverage ratio and to assess the company's overall financial stability.
Peer comparison
Jan 31, 2024