Ethan Allen Interiors Inc (ETD)
Interest coverage
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 77,914 | 133,476 | 138,322 | 77,285 |
| Interest expense | US$ in thousands | 243 | 245 | 213 | 201 | 874 |
| Interest coverage | 0.00 | 318.02 | 626.65 | 688.17 | 88.43 |
June 30, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $243K
= 0.00
The interest coverage ratio for Ethan Allen Interiors Inc has experienced significant fluctuations over the period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the ratio was 88.43, indicating a very strong ability to meet interest obligations, with the company's earnings substantially surpassing its interest expenses. This elevated level continued into June 30, 2022, with a sharp increase to 688.17, reflecting an extraordinary improvement in the firm's capacity to service its interest expenses during that fiscal year.
The ratio remained high in June 30, 2023, at 626.65, suggesting sustained robustness in the company's earnings relative to interest obligations. However, by June 30, 2024, the interest coverage ratio declined significantly to 318.02, which, while still indicating a strong ability to cover interest costs, signals a notable reduction in coverage compared to previous years.
The most recent data for June 30, 2025, shows a substantial deterioration, with the ratio dropping to zero. This indicates that for that period, the company either reported no earnings before interest and taxes sufficient to cover interest expenses, or possibly that the company reported losses or negligible earnings during that year, leading to an inability or decision not to pay interest, or potentially that the relevant financial data was unavailable or not applicable.
Overall, the trend reflects a period of exceptionally high interest coverage in the early years, followed by a marked decline, culminating in the absence of coverage in the latest period. This pattern warrants careful examination of the company's earnings, interest expense, and overall financial stability, particularly for the most recent fiscal year.
Peer comparison
Jun 30, 2025