Dycom Industries Inc (DY)
Interest coverage
| Jan 31, 2025 | Oct 31, 2024 | Oct 26, 2024 | Jul 31, 2024 | Jul 27, 2024 | Apr 30, 2024 | Apr 27, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 365,078 | 400,329 | 372,613 | 360,263 | 299,037 | 235,962 | 281,257 | 314,638 | 374,437 | 424,419 | 362,049 | 316,009 | 256,858 | 206,990 | 220,312 | 223,149 | 247,904 | 274,876 | 214,277 | 140,161 |
| Interest expense (ttm) | US$ in thousands | 48,894 | 33,561 | 28,944 | 30,442 | 30,787 | 30,756 | 31,874 | 30,330 | 27,605 | 27,607 | 25,027 | 25,257 | 24,541 | 24,545 | 23,765 | 23,545 | 21,331 | 21,334 | 19,860 | 27,986 |
| Interest coverage | 7.47 | 11.93 | 12.87 | 11.83 | 9.71 | 7.67 | 8.82 | 10.37 | 13.56 | 15.37 | 14.47 | 12.51 | 10.47 | 8.43 | 9.27 | 9.48 | 11.62 | 12.88 | 10.79 | 5.01 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $365,078K ÷ $48,894K
= 7.47
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
Based on the data provided for Dycom Industries Inc, the interest coverage ratio has fluctuated over the periods analyzed. The ratio ranged from a low of 5.01 in July 2022 to a high of 15.37 in October 2023. This indicates some variability in the company's ability to cover its interest expenses.
Overall, the interest coverage ratio has generally been above 1, which implies that Dycom Industries Inc has generated enough operating income to cover its interest payments. A ratio above 1 is typically seen as a good sign, as it suggests the company is not at immediate risk of defaulting on its debt obligations.
It is important for investors and creditors to monitor the trend of the interest coverage ratio over time to assess Dycom Industries Inc's financial health and its ability to service its debt in the long term. A consistently high or improving interest coverage ratio would indicate a strong financial position, while a declining ratio may signal potential financial distress.
Peer comparison
Jan 31, 2025