Floor & Decor Holdings Inc (FND)
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 | — | 321,428 | 396,760 | 338,992 | 214,579 |
| Interest expense | US$ in thousands | 2,773 | 9,897 | 11,138 | 4,924 | 8,389 |
| Interest coverage | 0.00 | 32.48 | 35.62 | 68.84 | 25.58 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $2,773K
= 0.00
Floor & Decor Holdings Inc's interest coverage ratio has shown a fluctuating trend over the past five years. In December 2020, the interest coverage ratio stood at 25.58, indicating that the company generated 25.58 times more earnings before interest and taxes (EBIT) than its interest expenses, which is considered healthy.
By December 2021, the interest coverage ratio significantly improved to 68.84, signaling a strong ability to meet interest obligations with operating profits. This substantial increase reflects a positive shift in the company's financial health and profitability.
However, there was a notable decline in the interest coverage ratio by December 2022, registering at 35.62. Despite the decrease, the ratio remains at a relatively high level, suggesting that Floor & Decor Holdings Inc still maintains a comfortable buffer to cover its interest payments.
The trend continued in December 2023, with the interest coverage ratio at 32.48, demonstrating a slight decrease from the previous year but still indicating a robust capacity to service its interest obligations.
Interestingly, the interest coverage ratio dropped to 0.00 by December 2024, which raises concerns about the company's ability to cover its interest expenses with its current level of earnings. This significant decline suggests a potentially strained financial position and may require further investigation into the company's financial performance and debt management.
Overall, while the interest coverage ratio has exhibited some fluctuations, especially in the most recent year, Floor & Decor Holdings Inc has generally maintained a healthy interest coverage position in the past five years, with the exception of the anomaly in 2024, which warrants closer monitoring and analysis.
Peer comparison
Dec 31, 2024