Energizer Holdings Inc (ENR)
Interest coverage
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 344,400 | -147,100 | 316,000 | 122,600 | 285,500 |
| Interest expense | US$ in thousands | 168,700 | 158,400 | 161,800 | 195,000 | 226,000 |
| Interest coverage | 2.04 | -0.93 | 1.95 | 0.63 | 1.26 |
September 30, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $344,400K ÷ $168,700K
= 2.04
The interest coverage ratio for Energizer Holdings Inc has shown a fluctuating trend over the past five years. The ratio was 2.50 in 2023, slightly lower than the previous year's ratio of 2.55. This downward trend raises some concern about the company's ability to cover its interest expenses from its operating income. However, it is worth noting that the ratio has consistently been above 1 in the last five years, indicating that the company has generated sufficient operating income to cover its interest expenses. Nonetheless, a downward trend should prompt further investigation into the company's ability to manage its debt and maintain its interest coverage ratio in the future.
Peer comparison
Sep 30, 2023