Energizer Holdings Inc (ENR)
Interest coverage
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 209,500 | 176,400 | 278,000 | 289,300 | 344,400 | -152,900 | -129,300 | -155,400 | -147,100 | 379,800 | 335,800 | 294,900 | 316,000 | 220,600 | 248,900 | 161,200 | 132,400 | 230,400 | 201,200 | 266,700 |
| Interest expense (ttm) | US$ in thousands | 155,700 | 159,500 | 163,200 | 166,500 | 168,700 | 169,100 | 168,000 | 164,300 | 158,400 | 153,200 | 150,700 | 151,500 | 161,800 | 175,200 | 187,400 | 195,500 | 195,000 | 193,500 | 194,600 | 224,600 |
| Interest coverage | 1.35 | 1.11 | 1.70 | 1.74 | 2.04 | -0.90 | -0.77 | -0.95 | -0.93 | 2.48 | 2.23 | 1.95 | 1.95 | 1.26 | 1.33 | 0.82 | 0.68 | 1.19 | 1.03 | 1.19 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $209,500K ÷ $155,700K
= 1.35
Interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a better ability to meet interest obligations.
Based on the data provided for Energizer Holdings Inc, the interest coverage ratio has varied over the past few quarters. In the most recent quarter, as of September 30, 2024, the interest coverage ratio was 1.35, indicating that the company generated enough earnings to cover its interest expenses.
However, it is important to note that the interest coverage ratio has been inconsistent in prior quarters, with some quarters showing negative values implying that the company's earnings were not sufficient to cover its interest expenses. For example, in the second and third quarters of 2023, the interest coverage ratio was negative, which could be a cause for concern as it indicates financial distress.
Overall, while the recent interest coverage ratio of 1.35 is positive, the inconsistency in prior quarters suggests that Energizer Holdings Inc may need to closely monitor its ability to meet interest obligations in the future and work towards achieving more stable and favorable interest coverage ratios.
Peer comparison
Sep 30, 2024