Campbell Soup Company Common Stock (CPB)
Interest coverage
| Jul 28, 2024 | Jul 30, 2023 | Jul 31, 2022 | Aug 1, 2021 | Aug 2, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,006,000 | 1,316,000 | 1,164,000 | 1,540,000 | 2,147,000 |
| Interest expense | US$ in thousands | 249,000 | 188,000 | 189,000 | 210,000 | 345,000 |
| Interest coverage | 4.04 | 7.00 | 6.16 | 7.33 | 6.22 |
July 28, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,006,000K ÷ $249,000K
= 4.04
Campbell Soup Company Common Stock's interest coverage ratio has shown a downward trend over the past five years. The interest coverage ratio decreased from 7.33 in 2021 to 4.04 in 2024, indicating a potential weakening ability of the company to meet its interest obligations from its operating income. Although the ratio fluctuated over the years, it remained above 1, signifying that the company generated sufficient operating income to cover its interest expenses. However, the decreasing trend implies that Campbell Soup Company's ability to service its debt may be under pressure, and investors may need to closely monitor the company's financial health and debt management strategies.
Peer comparison
Jul 28, 2024