Enersys (ENS)
Interest coverage
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 349,109 | 275,455 | 211,716 | 210,871 | 192,810 |
| Interest expense | US$ in thousands | 49,954 | 59,529 | 37,777 | 38,436 | 43,673 |
| Interest coverage | 6.99 | 4.63 | 5.60 | 5.49 | 4.41 |
March 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $349,109K ÷ $49,954K
= 6.99
To analyze Enersys' interest coverage based on the provided data, we can see the trend of the interest coverage ratio over the past five years. The interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income.
In the financial year ending March 31, 2024, Enersys' interest coverage ratio was 6.85, showing an improvement from the previous year. This suggests that Enersys earned 6.85 times the amount needed to cover its interest expenses for that year. A higher interest coverage ratio is generally considered favorable as it indicates a strong ability to meet interest payments.
Looking back at the trend, we see fluctuations in the interest coverage ratio over the past five years. Despite some variability, the ratios have generally been above 4, indicating a consistent ability to cover interest payments comfortably.
Overall, Enersys' interest coverage ratio has shown improvement over the years and remained at levels that indicate a healthy financial position regarding its interest payment obligations.
Peer comparison
Mar 31, 2024