Edgewell Personal Care Co (EPC)
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 | 226,200 | 195,500 | 215,000 | 148,500 | -327,700 |
| Interest expense | US$ in thousands | 78,500 | 71,400 | 67,900 | 61,200 | 62,600 |
| Interest coverage | 2.88 | 2.74 | 3.17 | 2.43 | -5.23 |
September 30, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $226,200K ÷ $78,500K
= 2.88
The interest coverage ratio measures a company's ability to meet its interest obligations using its operating income. Edgewell Personal Care Co's interest coverage has fluctuated over the past five years, ranging from 2.75 to 4.64. A higher interest coverage ratio indicates a better ability to meet interest payments from operating income.
The company's interest coverage ratio of 3.10 in September 2023 suggests that it generated 3.10 times the operating income to cover its interest expenses for that period. This indicates a moderate ability to meet interest obligations. Comparing this to previous years, the ratio has shown some variability, which could be attributed to changes in operating income and interest expenses.
It's important to note that a consistent downward trend or a ratio consistently below 1.0 could indicate potential difficulties in meeting interest payments from operating income. Therefore, monitoring the trend of this ratio over time is crucial to assess the company's financial health and ability to service its debt.
Peer comparison
Sep 30, 2023