Fox Factory Holding Corp (FOXF)
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 | 56,114 | -2,891 | 20,094 | 54,126 | 99,941 | 205,495 | 230,055 | 247,746 | 245,519 | 233,311 | 210,869 | 193,034 | 185,468 | 183,872 | 189,530 | 156,178 | 122,786 | 109,612 | 94,990 | 105,121 |
| Interest expense (ttm) | US$ in thousands | 54,942 | 49,337 | 38,575 | 29,128 | 19,320 | 14,003 | 13,204 | 10,483 | 8,939 | 8,152 | 7,334 | 7,235 | 8,162 | 8,615 | 9,057 | 10,351 | 9,294 | 7,621 | 6,078 | 4,191 |
| Interest coverage | 1.02 | -0.06 | 0.52 | 1.86 | 5.17 | 14.68 | 17.42 | 23.63 | 27.47 | 28.62 | 28.75 | 26.68 | 22.72 | 21.34 | 20.93 | 15.09 | 13.21 | 14.38 | 15.63 | 25.08 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $56,114K ÷ $54,942K
= 1.02
Fox Factory Holding Corp's interest coverage ratio shows a fluctuating trend over the past few years. The ratio was relatively stable at a healthy level, ranging from 13.21 to 28.75 from December 31, 2020, to June 30, 2022. This indicates the company's ability to comfortably meet its interest obligations with its operating income.
However, there was a significant decline in the interest coverage ratio starting from March 31, 2023, reaching a low of 0.52 on June 30, 2024. This suggests that the company may be experiencing challenges in generating sufficient operating income to cover its interest expenses during this period.
Furthermore, the interest coverage ratio turned negative, indicating a potential inability to cover interest payments from September 30, 2024. This could raise concerns about the company's financial stability and its ability to service its debt obligations.
Overall, the declining trend in Fox Factory Holding Corp's interest coverage ratio raises potential red flags regarding the company's financial health and its ability to navigate through challenging economic conditions. Investors and creditors may closely monitor this ratio to assess the company's ability to manage its debt effectively in the future.
Peer comparison
Dec 31, 2024