National Vision Holdings Inc (EYE)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -7,529 | 4,181 | 15,722 | 21,585 | 29,452 | 33,437 | 46,512 | 61,938 | 66,364 | 84,281 | 118,370 | 152,138 | 177,207 | 226,043 | 230,126 | 132,744 | 86,852 | 38,336 | -15,132 | 48,304 |
| Interest expense (ttm) | US$ in thousands | 16,184 | 15,825 | 15,631 | 14,271 | 14,882 | 13,237 | 11,300 | 13,427 | 12,704 | 13,435 | 17,201 | 23,426 | 25,612 | 35,020 | 41,752 | 47,202 | 48,327 | 42,965 | 38,363 | 31,693 |
| Interest coverage | -0.47 | 0.26 | 1.01 | 1.51 | 1.98 | 2.53 | 4.12 | 4.61 | 5.22 | 6.27 | 6.88 | 6.49 | 6.92 | 6.45 | 5.51 | 2.81 | 1.80 | 0.89 | -0.39 | 1.52 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-7,529K ÷ $16,184K
= -0.47
The interest coverage ratio of National Vision Holdings Inc has shown fluctuating trends over the indicated time periods. As of December 31, 2024, the interest coverage ratio stood at -0.47, indicating that the company's operating income was insufficient to cover its interest expenses. This suggests a potential risk of financial distress.
It is important to note that the interest coverage ratio dropped significantly from June 30, 2020, where it was at -0.39, to its lowest point by December 31, 2024. Although there was some improvement in the ratio in earlier periods, the downward trend raises concerns about the company's ability to meet its interest obligations with its current level of operating income.
Investors and creditors may closely monitor this ratio as it serves as a key indicator of the company's financial health and its ability to take on additional debt obligations. Management may need to focus on improving profitability and operational efficiency to ensure sustainable coverage of interest expenses in the future.
Peer comparison
Dec 31, 2024