Enerpac Tool Group Corp (EPAC)
Interest coverage
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 121,586 | 123,748 | 115,824 | 100,275 | 83,922 | 64,846 | 46,050 | 36,562 | 30,660 | 31,123 | 47,227 | 48,450 | 51,112 | 40,766 | 16,021 | 18,881 | 24,181 | 26,388 | 66,565 | 70,437 |
| Interest expense (ttm) | US$ in thousands | 13,524 | 14,012 | 13,877 | 13,271 | 12,389 | 10,889 | 8,590 | 6,240 | 4,386 | 3,537 | 3,926 | 4,509 | 5,264 | 7,701 | 10,913 | 14,205 | 19,218 | 22,474 | 25,177 | 27,700 |
| Interest coverage | 8.99 | 8.83 | 8.35 | 7.56 | 6.77 | 5.96 | 5.36 | 5.86 | 6.99 | 8.80 | 12.03 | 10.75 | 9.71 | 5.29 | 1.47 | 1.33 | 1.26 | 1.17 | 2.64 | 2.54 |
August 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $121,586K ÷ $13,524K
= 8.99
Based on the data provided, Enerpac Tool Group Corp's interest coverage ratio has fluctuated over the periods. The interest coverage ratio measures the company's ability to pay interest expenses on outstanding debt.
The trend in Enerpac Tool Group Corp's interest coverage ratio shows varying levels of ability to cover interest payments. The ratios range from a low of 1.17 to a high of 12.03, indicating significant fluctuations over time.
In recent periods, the interest coverage ratio has generally been above 5, suggesting that the company has sufficient earnings to cover its interest obligations. However, there are instances where the ratio dropped below 5, indicating a lesser ability to cover interest expenses with operating income.
It is essential for investors and creditors to closely monitor Enerpac Tool Group Corp's interest coverage ratio to assess the company's financial health and its ability to meet debt repayment obligations in the future.
Peer comparison
Aug 31, 2024