Calavo Growers Inc (CVGW)
Interest coverage
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -1,045 | 93 | 1,778 | -3,489 | -169 | -1,313 | -21,081 | -24,265 | -12,543 | -273 | 27,403 | 7,703 | -8,245 | -17,040 | 3,627 | 30,586 | 57,013 | 64,688 | 34,498 | 43,542 |
| Interest expense (ttm) | US$ in thousands | 2,903 | 2,456 | 1,857 | 1,549 | 1,736 | 1,686 | 1,497 | 1,220 | 951 | 798 | 718 | 713 | 864 | 877 | 833 | 858 | 881 | 948 | 1,024 | 931 |
| Interest coverage | -0.36 | 0.04 | 0.96 | -2.25 | -0.10 | -0.78 | -14.08 | -19.89 | -13.19 | -0.34 | 38.17 | 10.80 | -9.54 | -19.43 | 4.35 | 35.65 | 64.71 | 68.24 | 33.69 | 46.77 |
January 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-1,045K ÷ $2,903K
= -0.36
The interest coverage ratio for Calavo Growers Inc shows fluctuating performance over the periods examined. The ratio indicates the company's ability to meet its interest obligations from its operating income. A ratio below 1 suggests that the company is not generating enough operating income to cover its interest expenses.
Calavo's interest coverage ratio has been volatile, with negative ratios in some periods. This indicates a concerning situation where the company may be struggling to cover its interest payments with its operating earnings. The negative ratios suggest that the company's operating income is insufficient to service its debt obligations.
However, there are also periods where the interest coverage ratio improves significantly, reaching levels well above 1 and even exceeding 10. This indicates that in these periods, Calavo had a comfortably high level of operating income relative to its interest expenses, reflecting a stronger financial position.
Overall, the varying trend in Calavo Growers Inc's interest coverage ratio suggests fluctuations in the company's ability to cover its interest payments over time. It is important for investors and stakeholders to closely monitor this ratio to assess the company's financial health and ability to manage its debt obligations effectively.