Fox Factory Holding Corp (FOXF)
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 | 55,954 | 157,983 | 242,703 | 151,803 | 113,824 |
| Interest expense | US$ in thousands | 54,942 | 19,320 | 8,939 | 8,162 | 9,294 |
| Interest coverage | 1.02 | 8.18 | 27.15 | 18.60 | 12.25 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $55,954K ÷ $54,942K
= 1.02
The interest coverage ratio of Fox Factory Holding Corp has shown a generally improving trend from December 31, 2020, to December 31, 2023. The ratio increased from 12.25 in 2020 to 27.15 in 2022, indicating the company's ability to comfortably meet its interest obligations using its earnings before interest and taxes. However, there was a significant decrease in the interest coverage ratio to 8.18 in 2023, suggesting a potential strain on the company's ability to cover interest costs. Furthermore, the interest coverage ratio dropped significantly to 1.02 in 2024, indicating a concerning decline and the need for the company to closely monitor its ability to service its debt obligations with its operating income. Overall, while Fox Factory Holding Corp had a strong interest coverage in recent years, the substantial decrease in 2024 raises some concerns about its ability to handle interest payments.
Peer comparison
Dec 31, 2024