Cavco Industries Inc (CVCO)
Interest coverage
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 200,741 | 216,335 | 247,818 | 288,896 | 307,386 | 317,480 | 300,196 | 256,385 | 212,648 | 173,658 | 140,777 | 111,416 | 97,650 | 81,580 | 80,735 | 88,502 | 94,474 | 107,311 | 99,959 | 92,860 |
| Interest expense (ttm) | US$ in thousands | 1,649 | 1,665 | 1,039 | 1,015 | 910 | 736 | 729 | 699 | 702 | 747 | 715 | 706 | 738 | 784 | 1,097 | 1,205 | 1,495 | 1,886 | 2,319 | 2,958 |
| Interest coverage | 121.73 | 129.93 | 238.52 | 284.63 | 337.79 | 431.36 | 411.79 | 366.79 | 302.92 | 232.47 | 196.89 | 157.81 | 132.32 | 104.06 | 73.60 | 73.45 | 63.19 | 56.90 | 43.10 | 31.39 |
March 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $200,741K ÷ $1,649K
= 121.73
The interest coverage ratio of Cavco Industries Inc has shown a generally positive trend over the past few quarters. The ratio increased from 31.39 in June 2019 to a peak of 431.36 in December 2022, indicating the company's strong ability to cover its interest expenses with its operating income.
However, the ratio has shown some fluctuations in recent quarters, with a slight decrease to 121.73 in March 2024. Despite this decrease, the company's interest coverage remains relatively high, suggesting that Cavco Industries Inc continues to have a good ability to meet its interest obligations.
Overall, the trend in Cavco Industries Inc's interest coverage ratio reflects a strong financial position with a comfortable cushion to cover interest expenses, which is a positive indicator for creditors and investors.