Cavco Industries Inc (CVCO)
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 | 163,027 | 200,336 | 175,594 | 163,914 | 181,386 | 200,429 | 228,528 | 275,605 | 298,099 | 311,494 | 293,323 | 247,204 | 201,794 | 158,789 | 127,759 | 101,300 | 88,087 | 75,606 | 74,480 | 78,668 |
| Interest expense (ttm) | US$ in thousands | 370 | 654 | 1,341 | 1,473 | 1,649 | 1,665 | 1,039 | 1,015 | 910 | 736 | 729 | 699 | 702 | 747 | 715 | 706 | 738 | 784 | 1,097 | 1,205 |
| Interest coverage | 440.61 | 306.32 | 130.94 | 111.28 | 110.00 | 120.38 | 219.95 | 271.53 | 327.58 | 423.23 | 402.36 | 353.65 | 287.46 | 212.57 | 178.68 | 143.48 | 119.36 | 96.44 | 67.89 | 65.28 |
March 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $163,027K ÷ $370K
= 440.61
Cavco Industries Inc's interest coverage ratio has shown a positive trend over the period from June 30, 2020, to March 31, 2025. The interest coverage ratio measures the company's ability to meet its interest obligations on its debt. A higher interest coverage ratio indicates a stronger ability to cover interest expenses with operating profits.
The interest coverage ratio for Cavco Industries Inc has steadily increased from 65.28 on June 30, 2020, to a peak of 440.61 on March 31, 2025. This indicates a significant improvement in the company's ability to cover its interest expenses over the period under review.
The consistent improvement in the interest coverage ratio suggests that Cavco Industries Inc has managed its debt obligations effectively and has generated increasing profits to cover its interest payments. Investors and creditors generally prefer to see a higher interest coverage ratio as it signifies a lower risk of default on debt obligations.
Overall, based on the trend observed in Cavco Industries Inc's interest coverage ratio, the company appears to be in a healthy financial position with improving profitability and the ability to meet its interest obligations comfortably.
Peer comparison
Mar 31, 2025