Fresh Del Monte Produce Inc (FDP)
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 | 30,800 | 172,100 | 196,400 | 162,800 | 143,200 | 98,200 | 54,900 | 80,200 | 102,400 | 117,600 | 145,500 | 116,000 | 75,600 | 55,000 | 54,600 | 80,400 | 113,300 | 107,600 | 66,800 | 17,900 |
| Interest expense (ttm) | US$ in thousands | 24,100 | 27,600 | 27,800 | 27,100 | 24,400 | 22,200 | 20,800 | 20,200 | 20,300 | 20,700 | 21,000 | 21,400 | 21,400 | 21,700 | 22,600 | 23,900 | 25,400 | 26,600 | 27,600 | 26,800 |
| Interest coverage | 1.28 | 6.24 | 7.06 | 6.01 | 5.87 | 4.42 | 2.64 | 3.97 | 5.04 | 5.68 | 6.93 | 5.42 | 3.53 | 2.53 | 2.42 | 3.36 | 4.46 | 4.05 | 2.42 | 0.67 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $30,800K ÷ $24,100K
= 1.28
Fresh Del Monte Produce Inc's interest coverage ratio has shown fluctuating trends over the past few years. The ratio has generally been above 1, indicating that the company is generating enough operating income to cover its interest expenses.
In the most recent quarter, as of December 31, 2023, the interest coverage ratio was 1.28, which is a relatively low level and suggests that the company's operating income may not be sufficient to cover its interest expenses. This could be a concern for investors and lenders as it indicates a lower margin of safety for the company in meeting its debt obligations.
Looking at the historical data, the interest coverage ratio has been volatile, with some quarters showing stronger performance (such as September 2023 with a ratio of 6.24) and others weaker (such as March 2019 with a ratio of 0.67). This variability in the interest coverage ratio could be due to fluctuations in operating income and interest expenses over time.
Overall, while the company has generally maintained interest coverage ratios above 1, indicating some level of financial stability, investors and stakeholders may want to monitor future quarters to ensure that the company's operating income remains sufficient to cover its interest expenses and maintain a healthy financial position.
Peer comparison
Dec 31, 2023