CSW Industrials Inc (CSWI)
Interest coverage
| 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 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 136,395 | 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 | 54,549 |
| Interest expense (ttm) | US$ in thousands | 3,861 | 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 | 1,316 | 1,133 | 1,148 |
| Interest coverage | 35.33 | 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 | 37.45 | 49.64 | 47.52 |
March 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $136,395K ÷ $3,861K
= 35.33
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses.
Analyzing the interest coverage of CSW Industrials Inc from June 30, 2020, to March 31, 2025, shows that the company's interest coverage ratio has been fluctuating over time.
The interest coverage ratio was relatively high, ranging from 45 to 50, in the second half of 2020. This suggests that the company had a comfortable cushion to cover its interest expenses during that period.
However, from March 31, 2021, onwards, the interest coverage ratio started to decline, dropping below 20 by June 30, 2021, and below 15 by December 31, 2021. This downward trend indicates that the company's ability to cover its interest payments weakened significantly.
The ratio continued to decline through the following quarters, hitting a low of around 9 in September 30, 2023. This level is concerning as it suggests that CSW Industrials Inc may have been struggling to meet its interest obligations with its earnings during that period.
Subsequently, the interest coverage ratio improved slightly, reaching around 14 by March 31, 2024, and gradually increasing to around 35 by March 31, 2025. This uptick indicates a potential improvement in the company's ability to cover its interest expenses.
Overall, the fluctuation in CSW Industrials Inc's interest coverage ratio over the analyzed period highlights the importance of monitoring a company's financial performance and its ability to meet debt obligations. Investors and stakeholders should pay close attention to these trends to assess the company's financial health and risk levels.
Peer comparison
Mar 31, 2025