Edgewell Personal Care Co (EPC)
Interest coverage
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 197,400 | 226,200 | 195,500 | 215,000 | 148,500 |
| Interest expense | US$ in thousands | 76,500 | 78,500 | 71,400 | 67,900 | 61,200 |
| Interest coverage | 2.58 | 2.88 | 2.74 | 3.17 | 2.43 |
September 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $197,400K ÷ $76,500K
= 2.58
The interest coverage ratio of Edgewell Personal Care Co has exhibited some fluctuations over the past five years. The ratio indicates the company's ability to meet its interest obligations from its operating income.
In Sep 2020, the interest coverage ratio was 2.43, which improved to 3.17 in Sep 2021, demonstrating a stronger ability to cover its interest expenses with its operating income. However, in the following years, the ratio declined slightly to 2.74 in Sep 2022 and 2.88 in Sep 2023.
The most recent data point in Sep 2024 shows an interest coverage ratio of 2.58. While this suggests that the company is still generating sufficient operating income to cover its interest payments, the downward trend over the past two years indicates a potential need for closer monitoring.
Overall, Edgewell's interest coverage ratio has shown variability but has generally remained above 2 in the recent years, which is considered a satisfactory level. However, it would be prudent for stakeholders to keep an eye on this ratio to ensure the company's ability to meet its interest obligations in the future.
Peer comparison
Sep 30, 2024