Campbell’s Co (CPB)
Interest coverage
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,124,000 | 937,000 | 849,000 | 770,000 | 655,000 | 895,000 | 1,134,000 | 1,244,000 | 1,351,000 | 1,306,000 | 1,263,000 | 1,159,000 | 1,150,000 | 1,228,000 | 1,390,000 | 1,573,000 | 1,393,000 | 1,338,000 | 1,196,000 | 1,082,000 |
| Interest expense (ttm) | US$ in thousands | 345,000 | 344,000 | 343,000 | 325,000 | 308,000 | 270,000 | 232,000 | 211,000 | 190,000 | 193,000 | 196,000 | 194,000 | 190,000 | 186,000 | 184,000 | 184,000 | 184,000 | 190,000 | 194,000 | 193,000 |
| Interest coverage | 3.26 | 2.72 | 2.48 | 2.37 | 2.13 | 3.31 | 4.89 | 5.90 | 7.11 | 6.77 | 6.44 | 5.97 | 6.05 | 6.60 | 7.55 | 8.55 | 7.57 | 7.04 | 6.16 | 5.61 |
July 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,124,000K ÷ $345,000K
= 3.26
The interest coverage ratios of Campbell’s Co over the specified period reveal a trend of fluctuating financial resilience in meeting interest obligations. Starting at a ratio of 5.61 on July 31, 2022, the figure increased steadily, reaching a peak of 8.55 by January 31, 2023. This indicates that during this period, the company had a comfortable capacity to cover interest expenses multiple times over, reflecting strong earnings relative to interest obligations.
Subsequent periods show a decline from the peak, with the ratio dropping to 6.05 in July 2023 and further decreasing to 2.13 by July 31, 2024. These reductions suggest a diminishing ability to cover interest costs, potentially indicating profit pressures or increased leverage.
In the most recent observations, the interest coverage ratios remain relatively low, with values such as 2.37 on October 31, 2024, and around 2.48 to 3.26 projected through January to July 2025. This downward trend signals a tightening of the company's safety margin regarding interest payments, raising considerations about financial stability and increasing reliance on earnings to meet interest obligations.
Overall, the data demonstrates a significant decline in Campbell’s Co interest coverage over the analyzed period, highlighting potential concerns about future earnings capacity to sustain interest payments without strain.