Energizer Holdings Inc (ENR)
Interest coverage
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 209,500 | 344,400 | -147,100 | 316,000 | 122,600 |
| Interest expense | US$ in thousands | 155,700 | 168,700 | 158,400 | 161,800 | 195,000 |
| Interest coverage | 1.35 | 2.04 | -0.93 | 1.95 | 0.63 |
September 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $209,500K ÷ $155,700K
= 1.35
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher ratio indicates that the company is more capable of meeting its interest obligations.
For Energizer Holdings Inc, the interest coverage ratio has varied over the past five years. In 2024, the ratio decreased to 1.35 from 2.04 in 2023, indicating a slight decrease in the company's ability to cover its interest expenses. However, the ratio is still above 1, suggesting that the company generated enough operating income to cover its interest payments during that period.
In 2022, the interest coverage ratio was negative at -0.93, which suggests that the company's operating income was not sufficient to cover its interest expenses during that year. This is a concerning sign as it indicates financial distress.
In 2021, the ratio improved to 1.95 from 0.63 in 2020, indicating a significant increase in the company's ability to cover its interest expenses. This improvement suggests better financial performance and lower financial risk.
Overall, while there have been fluctuations in Energizer Holdings Inc's interest coverage ratio over the years, the company has generally been able to meet its interest obligations with its operating income, except for the year 2022 when the ratio was negative. Investors and stakeholders should closely monitor this ratio to assess the company's financial health and debt repayment capabilities.
Peer comparison
Sep 30, 2024