Fresh Del Monte Produce Inc (FDP)
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 | 189,600 | 52,400 | 16,500 | 10,900 | 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 |
| Interest expense (ttm) | US$ in thousands | 18,400 | 18,400 | 20,000 | 21,300 | 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 |
| Interest coverage | 10.30 | 2.85 | 0.82 | 0.51 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $189,600K ÷ $18,400K
= 10.30
Fresh Del Monte Produce Inc's interest coverage ratio has demonstrated fluctuations over the periods mentioned. The interest coverage ratio measures the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
In March 2020, the interest coverage ratio was 3.36, indicating that the company earned 3.36 times the amount required to cover its interest expenses. This ratio decreased to 2.42 in June 2020 and further decreased to 2.53 in September 2020, suggesting a potential strain on the company's ability to cover its interest payments.
However, from December 2020 to June 2021, the interest coverage ratio showed a positive trend, increasing from 3.53 to 6.93. This improvement indicates a stronger ability to meet interest obligations during this period.
Subsequently, the interest coverage ratio fluctuated between 5.04 and 7.06 from September 2021 to June 2023, indicating a relatively stable ability to cover interest payments. However, in December 2023, the ratio dropped significantly to 1.28, suggesting a potential challenge in meeting interest expenses with earnings.
The interest coverage ratio improved in the following periods, reaching 10.30 in December 2024. This significant increase indicates a substantially strengthened ability to cover interest expenses, potentially due to increased earnings or lower interest payments.
Overall, monitoring Fresh Del Monte Produce Inc's interest coverage ratio is crucial for assessing its financial health and ability to service its debt obligations. Fluctuations in the ratio may signal changes in the company's financial performance and risk profile, highlighting the importance of consistent monitoring and analysis.
Peer comparison
Dec 31, 2024