CSW Industrials Inc (CSWI)
Interest coverage
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 154,382 | 139,177 | 96,690 | 53,251 | 58,859 |
| Interest expense | US$ in thousands | 12,723 | 13,197 | 5,449 | 2,383 | 1,331 |
| Interest coverage | 12.13 | 10.55 | 17.74 | 22.35 | 44.22 |
March 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $154,382K ÷ $12,723K
= 12.13
Interest coverage is a key financial ratio that indicates a company's ability to meet its interest payments on outstanding debt. CSW Industrials Inc has shown a consistent pattern of strong interest coverage over the past five years, with values of 12.51 in 2024, 10.54 in 2023, 17.87 in 2022, 24.85 in 2021, and 49.48 in 2020.
The declining trend in interest coverage from 2020 to 2024 may indicate that the company's ability to cover its interest expenses has weakened over this time period. However, it is important to note that CSW Industrials Inc still maintains a relatively high interest coverage ratio, which suggests that the company is generating sufficient earnings to comfortably cover its interest payments.
Overall, while there has been a slight decrease in interest coverage over the years, CSW Industrials Inc's interest coverage ratio remains at healthy levels, providing a buffer against potential financial risks associated with servicing debt obligations.
Peer comparison
Mar 31, 2024