H B Fuller Company (FUL)
Interest coverage
| 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 | Nov 30, 2019 | Aug 31, 2019 | Jun 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 225,994 | 237,795 | 238,380 |
| Interest expense (ttm) | US$ in thousands | 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 | 103,375 | 106,986 | 109,237 |
| Interest coverage | 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 | 2.19 | 2.22 | 2.18 |
March 2, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $361,746K ÷ $136,280K
= 2.65
The interest coverage ratio for H B Fuller Company has shown some fluctuations over the past few quarters. The ratio has generally been above 2, indicating that the company's operating income is sufficient to cover its interest expenses. A higher ratio suggests that the company is in a better position to meet its interest obligations.
Looking at the trend, the interest coverage ratio has ranged from 2.18 to 3.81 over the past few quarters. It peaked at 3.81 in August 27, 2022, and hit a low of 2.18 in August 29, 2020. This implies that the company's ability to cover its interest payments was strongest in August 27, 2022, and relatively weaker in August 29, 2020.
Overall, the trend in H B Fuller Company's interest coverage ratio indicates some variability but generally shows that the company has been able to comfortably meet its interest obligations with its operating income. It would be important to keep track of this ratio in future periods to ensure the company's financial health and stability.