National Vision Holdings Inc (EYE)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -9,500 | -45,132 | 61,275 | 174,937 | 87,007 |
| Interest expense | US$ in thousands | 16,184 | 14,339 | 462 | 25,612 | 48,171 |
| Interest coverage | -0.59 | -3.15 | 132.63 | 6.83 | 1.81 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-9,500K ÷ $16,184K
= -0.59
Based on the data provided, the interest coverage ratio for National Vision Holdings Inc has fluctuated significantly over the past five years.
As of December 31, 2020, the interest coverage ratio was 1.81, indicating that the company's operating income was just sufficient to cover its interest expenses.
By December 31, 2021, the interest coverage ratio improved significantly to 6.83, showing that the company had a healthier cushion to meet its interest obligations.
The interest coverage ratio saw a massive increase by December 31, 2022, reaching 132.63. This high ratio suggests that National Vision Holdings Inc has substantially improved its ability to meet its interest payments with its operating income.
However, the trend reversed by December 31, 2023, with the interest coverage ratio falling to -3.15, indicating that the operating income was insufficient to cover the interest expenses. This could raise concerns about the company's financial health and ability to service its debt.
By December 31, 2024, the interest coverage ratio decreased further to -0.59, reinforcing the financial challenges faced by National Vision Holdings Inc in meeting its interest obligations.
Overall, the trend in the interest coverage ratio for National Vision Holdings Inc highlights fluctuations in the company's ability to cover its interest payments with its operating income. It is essential for investors and stakeholders to closely monitor and assess the company's financial performance and debt management strategies in light of these fluctuations.
Peer comparison
Dec 31, 2024