National Beverage Corp (FIZZ)
Interest coverage
| Apr 27, 2024 | Apr 29, 2023 | Apr 30, 2022 | May 1, 2021 | May 2, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 218,510 | 186,684 | 176,054 | 227,825 | 165,746 |
| Interest expense | US$ in thousands | — | 242 | 260 | 220 | 3,709 |
| Interest coverage | — | 771.42 | 677.13 | 1,035.57 | 44.69 |
April 27, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $218,510K ÷ $—K
= —
The interest coverage ratio for National Beverage Corp has shown fluctuations over the past five years. In the most recent fiscal year ending on April 29, 2023, the company had an exceptionally high interest coverage of 771.42, indicating a strong ability to cover its interest expenses with operating income. This high ratio suggests that the company earned significantly more than its interest obligations during that period.
Looking back further, the interest coverage ratio for National Beverage Corp was also robust in the fiscal years ending on April 30, 2022, and May 1, 2021, at 799.45 and 1,035.57, respectively. These ratios further exemplify the company's healthy financial position and ability to comfortably meet its interest payments.
However, in the fiscal year ending on May 2, 2020, the interest coverage ratio dropped significantly to 44.69, signaling a potential challenge in meeting interest obligations with operating income during that period.
Overall, the trend in National Beverage Corp's interest coverage ratios demonstrates a history of strong financial health and ability to cover interest expenses, with the one anomalous year in 2020. It is essential for the company to maintain a strong interest coverage ratio to ensure continued financial stability and ability to meet debt obligations.
Peer comparison
Apr 27, 2024