Dycom Industries Inc (DY)
Interest coverage
| Jan 27, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Jan 25, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 294,983 | 182,957 | 57,266 | 69,455 | 102,671 |
| Interest expense | US$ in thousands | 2,984 | 2,835 | 4,490 | 10,238 | 24,135 |
| Interest coverage | 98.85 | 64.54 | 12.75 | 6.78 | 4.25 |
January 27, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $294,983K ÷ $2,984K
= 98.85
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a stronger ability to meet interest obligations.
Looking at Dycom Industries, Inc.'s interest coverage ratio over the past five years, we observe the following trend:
- Jan 27, 2024: 6.14
- Jan 28, 2023: 5.18
- Jan 29, 2022: 2.46
- Jan 30, 2021: 4.10
- Jan 25, 2020: 2.32
The interest coverage ratio has varied over the years, with a significant increase from 2.32 in 2020 to 6.14 in 2024. This improvement indicates that Dycom Industries has strengthened its ability to cover interest expenses with its operating income.
Overall, the upward trend in Dycom Industries' interest coverage ratio suggests that the company has been more efficient in managing its debt and generating earnings to cover interest payments. This could be seen as a positive sign of financial health and stability for the company.
Peer comparison
Jan 27, 2024