Dycom Industries Inc (DY)
Interest coverage
| Oct 26, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 299,703 | 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 |
| Interest expense (ttm) | US$ in thousands | 4,373 | 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 |
| Interest coverage | 68.53 | 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 |
October 26, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $299,703K ÷ $4,373K
= 68.53
The interest coverage ratio of Dycom Industries Inc, as evidenced by the data provided, has exhibited some fluctuations over the past few years. The interest coverage ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher ratio indicates a better ability to cover interest expenses.
From January 2020 to April 2023, Dycom Industries Inc maintained a relatively stable interest coverage ratio, ranging from around 70 to 100. This indicates a healthy ability to cover its interest payments with its operating earnings during this period.
However, a noticeable decline in the interest coverage ratio is observed from January 2021 to January 2022, where the ratio dropped significantly from 14.95 to 11.08. This decrease suggests a potential strain on the company's ability to cover its interest expenses with its operational earnings during this period.
The most significant decline in the interest coverage ratio is observed from January 2022 to October 2022, where the ratio decreased from 11.08 to 2.20. This sharp decline may raise concerns regarding Dycom Industries Inc's financial stability and its ability to meet its interest obligations comfortably.
Furthermore, the interest coverage ratio continued to decrease from October 2022 onwards, hitting a low of 2.20 in January 2023 and further declining to 4.25 in January 2024. These lower ratios indicate that Dycom Industries Inc may be facing challenges in generating sufficient earnings to cover its interest expenses adequately, potentially signaling financial distress.
In conclusion, the fluctuating trend in Dycom Industries Inc's interest coverage ratio suggests varying levels of financial strength and operational performance over the analyzed periods, with a notable decline in recent years, emphasizing the importance of monitoring the company's ability to meet its interest obligations to maintain financial health.
Peer comparison
Oct 26, 2024