CSW Industrials, Inc. (CSW)

The interest coverage ratios for CSW Industrials, Inc. over the specified periods indicate significant variability and notable trends. As of March 31, 2021, the interest coverage stood at 22.35, reflecting a strong capacity to meet interest obligations through earnings before interest and taxes (EBIT). By March 31, 2022, the ratio decreased to 17.74, suggesting a relative decline in earnings coverage but still maintaining a comfortable margin. The further decline by March 31, 2023, to 10.55 indicates a reduction in earnings relative to interest expenses, although the company still appears capable of servicing interest costs without significant difficulty.

In the subsequent year, March 31, 2024, the ratio increased to 12.13, signaling a modest improvement in interest coverage, which may be attributable to an increase in earnings or a reduction in interest expense. However, the most striking change occurs with the projected ratio of 670.58 as of March 31, 2025, which represents an extraordinary increase. Such a high ratio suggests a substantial improvement in earnings, a significantly lower interest expense, or a combination of both, resulting in an extensive cushion for interest payments.

Overall, the trend shows an initial decline in interest coverage ratios from 2021 through 2023, followed by a surprising and dramatic projected increase in 2025. This pattern indicates that the company's ability to cover interest obligations has experienced some weakening but is anticipated to rebound strongly, possibly due to strategic changes, operational improvements, or extraordinary earnings growth in the upcoming periods.

Peer comparison

Mar 31, 2025