CSW Industrials Inc (CSWI)
Interest coverage
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 154,382 | 139,177 | 96,690 | 53,251 |
| Interest expense | US$ in thousands | 269 | 12,723 | 13,197 | 5,449 | 2,383 |
| Interest coverage | 0.00 | 12.13 | 10.55 | 17.74 | 22.35 |
March 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $269K
= 0.00
CSW Industrials Inc's interest coverage ratio has exhibited a downward trend over the past five years. As of March 31, 2021, the interest coverage ratio stood at a healthy 22.35, indicating that the company generated more than enough operating income to cover its interest expense.
However, the ratio declined to 17.74 by March 31, 2022, and further decreased to 10.55 by March 31, 2023. This suggests a potential weakening in the company's ability to service its interest obligations from its operating earnings.
By March 31, 2024, the interest coverage ratio slightly improved to 12.13, but it is still significantly lower compared to the initial period. Notably, as of March 31, 2025, the interest coverage ratio is reported as 0.00, which may signal a concerning situation where the company's operating income is insufficient to cover its interest expenses.
In summary, CSW Industrials Inc's interest coverage ratio has been on a declining trend, indicating a potential strain on its ability to pay interest obligations from its operating earnings. Further analysis and monitoring of the company's financial performance are recommended to assess and address this deteriorating trend.
Peer comparison
Mar 31, 2025