H B Fuller Company (FUL)
Interest coverage
| Nov 30, 2024 | Aug 31, 2024 | Jun 1, 2024 | Mar 2, 2024 | Dec 2, 2023 | Sep 2, 2023 | Jun 3, 2023 | Mar 4, 2023 | Dec 3, 2022 | Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 348,219 | 385,214 | 372,192 | 361,746 | 355,138 | 331,986 | 328,621 | 325,985 | 322,717 | 308,137 | 279,636 | 261,263 | 252,614 | 250,874 | 250,152 | 237,914 | 218,317 | 197,083 | 205,058 | 220,535 |
| Interest expense (ttm) | US$ in thousands | 134,982 | 135,646 | 135,463 | 136,280 | 137,448 | 133,130 | 121,475 | 108,172 | 93,299 | 80,882 | 76,828 | 76,942 | 79,107 | 82,443 | 83,243 | 84,945 | 87,341 | 88,618 | 94,029 | 99,325 |
| Interest coverage | 2.58 | 2.84 | 2.75 | 2.65 | 2.58 | 2.49 | 2.71 | 3.01 | 3.46 | 3.81 | 3.64 | 3.40 | 3.19 | 3.04 | 3.01 | 2.80 | 2.50 | 2.22 | 2.18 | 2.22 |
November 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $348,219K ÷ $134,982K
= 2.58
The interest coverage ratio for H B Fuller Company has shown a generally increasing trend over the periods analyzed. Starting at 2.22 in February 2020, the ratio has steadily improved to 2.58 in December 2023, before experiencing a slight decline to 2.65 in March 2024. Over the most recent periods, the interest coverage ratio has ranged from 2.58 to 3.81, indicating that the company's operating income is sufficient to cover its interest expenses.
The upward trend in the interest coverage ratio suggests that H B Fuller Company has been managing its interest payments more effectively over time, which could indicate improved financial stability and lower risk of default. However, the slight decrease in the ratio in the most recent period may warrant monitoring to ensure that the company's profitability and cash flow remain strong enough to cover its interest obligations.
Peer comparison
Nov 30, 2024