Floor & Decor Holdings Inc (FND)
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 | 265,769 | 51,351 | 69,806 | 93,452 | 120,064 | 369,983 | 386,868 | 398,304 | 396,760 | 363,128 | 344,868 | 337,015 | 338,992 | 345,917 | 341,322 | 262,754 | 213,479 | 187,589 | 140,187 | 166,093 |
| Interest expense (ttm) | US$ in thousands | 2,841 | 3,698 | 4,755 | 6,990 | 9,897 | 14,278 | 16,064 | 14,838 | 11,138 | 6,985 | 5,077 | 4,698 | 4,924 | 6,060 | 6,960 | 7,970 | 8,389 | 7,813 | 7,767 | 7,687 |
| Interest coverage | 93.55 | 13.89 | 14.68 | 13.37 | 12.13 | 25.91 | 24.08 | 26.84 | 35.62 | 51.99 | 67.93 | 71.74 | 68.84 | 57.08 | 49.04 | 32.97 | 25.45 | 24.01 | 18.05 | 21.61 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $265,769K ÷ $2,841K
= 93.55
Floor & Decor Holdings Inc has experienced fluctuating levels of interest coverage over the past few years. The interest coverage ratio, a measure of a company's ability to pay interest expenses on outstanding debt, indicates the company's ability to meet its interest obligations.
The interest coverage ratio for Floor & Decor Holdings Inc as of December 31, 2024, was 93.55, which suggests that the company's earnings before interest and taxes are significant enough to cover its interest expenses almost 94 times over. This is considered a very strong interest coverage ratio and indicates a low level of financial risk in terms of meeting interest payments.
It is worth noting that the interest coverage ratio has experienced some fluctuations over the years, reaching a low of 12.13 as of December 31, 2023, and then steadily rising to its current high level. Overall, the trend indicates an improving ability to cover interest expenses, which is a positive sign for investors and lenders alike.
In conclusion, Floor & Decor Holdings Inc's interest coverage ratio has shown considerable strength and improvement, reflecting the company's solid financial position and ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2024