Dycom Industries Inc (DY)
Interest coverage
| Jul 27, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 24, 2020 | Jul 25, 2020 | Apr 25, 2020 | Jan 25, 2020 | Oct 26, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 320,734 | 307,641 | 294,982 | 295,096 | 251,893 | 228,997 | 182,956 | 146,146 | 112,235 | 78,768 | 57,266 | 56,547 | 67,765 | 93,377 | 69,455 | 65,194 | 54,899 | 51,826 | 102,670 | 102,337 |
| Interest expense (ttm) | US$ in thousands | 4,327 | 4,298 | 2,984 | 2,990 | 3,000 | 3,007 | 2,835 | 2,842 | 3,212 | 3,936 | 4,490 | 5,105 | 5,240 | 6,245 | 10,238 | 15,043 | 19,921 | 23,510 | 24,135 | 23,867 |
| Interest coverage | 74.12 | 71.58 | 98.85 | 98.69 | 83.96 | 76.15 | 64.53 | 51.42 | 34.94 | 20.01 | 12.75 | 11.08 | 12.93 | 14.95 | 6.78 | 4.33 | 2.76 | 2.20 | 4.25 | 4.29 |
July 27, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $320,734K ÷ $4,327K
= 74.12
The interest coverage ratio for Dycom Industries Inc has exhibited fluctuations over the past several quarters, indicating variations in the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
In general, the interest coverage ratio has been relatively high, ranging from a peak of 98.85 in January 2024 to a low of 2.20 in October 2019. This suggests that the company has generally had a strong ability to meet its interest obligations from its operating profits.
However, the significant decrease in the interest coverage ratio from 98.85 in January 2024 to 2.20 in October 2019 raises red flags regarding the company's ability to cover its interest expenses. It is important to closely monitor this trend to understand the underlying reasons for such a sharp decline and to assess the company's financial health and sustainability.
Overall, the fluctuations in Dycom Industries Inc's interest coverage ratio highlight the importance of continuous monitoring and analysis to evaluate the company's financial performance and potential risks related to its debt obligations.
Peer comparison
Jul 27, 2024