Fox Factory Holding Corp (FOXF)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 160,409 | 205,862 | 230,422 | 245,833 | 243,630 | 230,495 | 223,355 | 208,336 | 200,770 | 194,489 | 180,534 | 146,598 | 112,718 | 101,045 | 90,045 | 99,789 | 110,305 | 107,108 | 103,248 | 98,712 |
| Interest expense (ttm) | US$ in thousands | 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 | 3,173 | 3,262 | 3,262 | 3,089 |
| Interest coverage | 8.30 | 14.70 | 17.45 | 23.45 | 27.25 | 28.27 | 30.45 | 28.80 | 24.60 | 22.58 | 19.93 | 14.16 | 12.13 | 13.26 | 14.81 | 23.81 | 34.76 | 32.84 | 31.65 | 31.96 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $160,409K ÷ $19,320K
= 8.30
The interest coverage ratio for Fox Factory Holding Corp has generally been healthy and improving over the reported periods, indicating the company's ability to meet its interest payment obligations with earnings. The ratio has shown an upward trend from 2019 to 2023, reaching its peak at 34.76 in December 2019. The company's interest coverage ratio experienced some fluctuations, but the overall trend suggests a strong ability to cover interest expenses with operating income. A consistently high interest coverage ratio is a positive sign for creditors and investors as it indicates the company's sound financial health and lower risk of defaulting on debt payments.
Peer comparison
Dec 31, 2023