H B Fuller Company (FUL)
Interest coverage
| Nov 30, 2024 | Dec 2, 2023 | Dec 3, 2022 | Nov 27, 2021 | Nov 28, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 348,220 | 355,137 | 322,718 | 252,612 | 218,317 |
| Interest expense | US$ in thousands | 134,983 | 137,448 | 93,300 | 79,107 | 87,341 |
| Interest coverage | 2.58 | 2.58 | 3.46 | 3.19 | 2.50 |
November 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $348,220K ÷ $134,983K
= 2.58
The interest coverage ratio of H B Fuller Company has shown some fluctuations over the past few years. In November 2020, the interest coverage ratio stood at 2.50, indicating that the company's operating income could cover its interest expense 2.50 times.
By November 2021, there was an improvement in the interest coverage ratio to 3.19, suggesting an increased ability to meet its interest obligations. Subsequently, in December 2022 and December 2023, the ratio continued to trend upwards to 3.46 and then declined slightly to 2.58, respectively.
In the most recent period, by November 2024, the interest coverage ratio remained stable at 2.58, indicating that the company's operating income was able to cover its interest expense 2.58 times.
Overall, while there have been fluctuations in the interest coverage ratio of H B Fuller Company, it has generally shown an improving trend, indicating a strengthening ability to service its interest payments over the years. It is important for investors and creditors to monitor this ratio to assess the company's financial health and ability to meet its debt obligations.
Peer comparison
Nov 30, 2024