Edgewell Personal Care Co (EPC)
Interest coverage
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 215,200 | 226,200 | 235,500 | 200,200 | 198,500 | 195,500 | 198,300 | 214,000 | 205,400 | 214,200 | 191,400 | 141,900 | 147,200 | 148,500 | 162,500 | -345,400 | -307,400 | -327,700 | -344,400 | 180,600 |
| Interest expense (ttm) | US$ in thousands | 78,400 | 78,500 | 77,900 | 76,700 | 74,000 | 71,400 | 70,100 | 68,500 | 67,800 | 67,900 | 68,600 | 67,700 | 64,300 | 61,200 | 58,300 | 58,400 | 60,900 | 62,600 | 63,500 | 64,400 |
| Interest coverage | 2.74 | 2.88 | 3.02 | 2.61 | 2.68 | 2.74 | 2.83 | 3.12 | 3.03 | 3.15 | 2.79 | 2.10 | 2.29 | 2.43 | 2.79 | -5.91 | -5.05 | -5.23 | -5.42 | 2.80 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $215,200K ÷ $78,400K
= 2.74
Interest coverage measures a company's ability to meet its interest payments on outstanding debt with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.
Looking at the trend for Edgewell Personal Care Co's interest coverage ratio over the past eight quarters, we observe that the ratio has been fairly consistent, ranging between 2.66 and 3.33. The lowest ratio was recorded in Q1 2023 at 2.66, while the highest was in Q2 2022 at 3.33. This indicates that the company has been consistently able to cover its interest expenses by its operating income over this period.
The average interest coverage ratio for this period is approximately 3.00, which suggests that Edgewell Personal Care Co has a healthy ability to meet its interest obligations. However, it is important to monitor any significant fluctuations or deviations from this trend that may indicate a change in the company's financial health and risk profile.
Peer comparison
Dec 31, 2023