Ethan Allen Interiors Inc (ETD)
Interest coverage
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 92,846 | 141,225 | 138,321 | 76,911 | 14,889 |
| Interest expense | US$ in thousands | 7,400 | 4,400 | 200 | 500 | 700 |
| Interest coverage | 12.55 | 32.10 | 691.60 | 153.82 | 21.27 |
June 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $92,846K ÷ $7,400K
= 12.55
Ethan Allen Interiors Inc's interest coverage ratio has exhibited significant fluctuations over the past five years. In particular, the interest coverage ratio stood at 12.55 in 2024, which indicates the company's ability to cover its interest expenses from its operating income. Comparing this figure to the previous years, the interest coverage ratio was notably lower than the exceptionally high ratios of 32.10 in 2023, 691.60 in 2022, and 153.82 in 2021. However, in 2020, the ratio was 21.27, showing a comparable level of interest coverage as in 2024. These fluctuations in the interest coverage can suggest variations in the company's profitability and ability to meet its interest obligations. It is important for stakeholders to monitor this metric closely to assess Ethan Allen Interiors Inc's financial health and its capacity to manage its debt effectively.
Peer comparison
Jun 30, 2024