CSW Industrials, Inc. (CSW)
Interest coverage
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 180,264 | 180,577 | 181,095 | 170,653 | 163,489 | 153,605 | 149,363 | 152,585 | 144,023 | 139,191 | 127,583 | 117,229 | 107,803 | 95,097 | 78,457 | 69,961 | 65,850 | 53,494 | 49,284 | 56,247 |
| Interest expense (ttm) | US$ in thousands | 3,979 | 5,477 | 6,504 | 9,269 | 11,234 | 12,723 | 14,187 | 15,622 | 15,422 | 13,197 | 10,388 | 7,372 | 5,696 | 5,450 | 5,464 | 4,749 | 3,603 | 2,383 | 1,071 | 888 |
| Interest coverage | 45.30 | 32.97 | 27.84 | 18.41 | 14.55 | 12.07 | 10.53 | 9.77 | 9.34 | 10.55 | 12.28 | 15.90 | 18.93 | 17.45 | 14.36 | 14.73 | 18.28 | 22.45 | 46.02 | 63.34 |
June 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $180,264K ÷ $3,979K
= 45.30
The interest coverage ratios of CSW Industrials, Inc. over the specified periods indicate a significant capacity to meet its interest obligations with its earnings. As of September 30, 2020, the ratio stood at an exceptionally high 63.34, reflecting a very comfortable cushion for debt servicing. Throughout the subsequent periods, the ratio demonstrated a downward trend, reaching a low of 9.34 as of June 30, 2023, which suggests a tightening of the company's ability to cover interest expenses solely from operating earnings. During this period, the ratio remained positive, indicating continued ability to meet interest obligations, albeit with reduced margin of safety.
Starting from the second quarter of 2024, the ratio exhibited a marked upward trajectory, increasing to 12.07 by March 31, 2024, and further rising to 18.41 by September 30, 2024. The upward movement persisted, culminating at 45.30 by June 30, 2025, with a projection of 32.97 for the first quarter of 2025 and reaching 45.30 in the second quarter of 2025. This pattern suggests a substantial improvement in the company's earnings relative to its interest expenses, pointing toward enhanced financial stability and reduced risk associated with debt servicing.
Overall, the trend in interest coverage ratios reflects an initial period of extremely strong coverage, followed by a decline that persisted into mid-2023, and subsequently a recovery and strengthening of coverage capacity in late 2024 and into 2025. This progression indicates the company's ongoing efforts or changing circumstances affecting profitability and interest expense coverage, with a positive outlook on its capacity to meet debt obligations more comfortably in the near future.
Peer comparison
Jun 30, 2025