Cavco Industries Inc (CVCO)
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 | 200,741 | 307,386 | 212,648 | 97,650 | 94,474 |
| Interest expense | US$ in thousands | 1,649 | 910 | 702 | 738 | 1,495 |
| Interest coverage | 121.73 | 337.79 | 302.92 | 132.32 | 63.19 |
March 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $200,741K ÷ $1,649K
= 121.73
Cavco Industries Inc's interest coverage ratio has fluctuated over the past five years. The interest coverage ratio measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT).
In the most recent year ending March 31, 2024, the interest coverage ratio was 121.73, indicating that the company generated earnings more than 121 times its interest expense for that period. This suggests a healthy level of earnings relative to its interest obligations.
The trend over the five-year period shows an increasing interest coverage ratio, with fluctuations observed in each year. The ratio was highest in March 2023 at 337.79, indicating a significant improvement in the company's ability to cover its interest payments. This was followed by a slight decrease in the subsequent year, but still remained at a relatively high level.
Overall, the trend indicates that Cavco Industries Inc has been effectively managing its interest obligations, with a generally improving ability to cover interest expenses with earnings over the five-year period.