Greenbrier Companies Inc (GBX)
Interest coverage
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 242,200 | 246,100 | 176,400 | 174,700 | 143,600 | 101,400 | 118,000 | 99,700 | 105,800 | 54,900 | 41,000 | 19,297 | 60,409 | 124,545 | 168,429 | 223,451 | 209,828 | 189,446 | 184,116 | 166,831 |
| Interest expense (ttm) | US$ in thousands | 90,400 | 88,100 | 84,500 | 81,000 | 73,600 | 63,800 | 56,800 | 53,181 | 48,662 | 46,430 | 44,933 | 43,905 | 40,586 | 43,627 | 42,763 | 39,645 | 41,853 | 38,481 | 35,407 | 33,866 |
| Interest coverage | 2.68 | 2.79 | 2.09 | 2.16 | 1.95 | 1.59 | 2.08 | 1.87 | 2.17 | 1.18 | 0.91 | 0.44 | 1.49 | 2.85 | 3.94 | 5.64 | 5.01 | 4.92 | 5.20 | 4.93 |
February 29, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $242,200K ÷ $90,400K
= 2.68
The interest coverage ratio for Greenbrier Companies Inc has shown fluctuations over the past few quarters. The ratio provides insight into the company's ability to meet its interest payments on outstanding debt.
In the most recent quarter (ending Feb 29, 2024), the interest coverage ratio was 2.68, indicating that the company generated 2.68 times the operating income necessary to cover its interest expenses. This suggests a moderate ability to meet interest obligations.
Looking back at historical data, we see that the interest coverage ratio has generally been above 1, which is a positive sign as it shows the company has consistently been able to cover its interest payments.
There are periods of fluctuation in the ratio, with some quarters showing higher ratios (e.g., 5.64 in May 31, 2020) and others showing lower ratios (e.g., 0.44 in May 31, 2021). This variability could be attributed to changes in operating income and interest expenses.
Overall, while the company has shown some variability in its interest coverage ratio, it has generally demonstrated the ability to comfortably meet its interest obligations. Investors and creditors may monitor this ratio going forward to assess the company's financial health and debt repayment capacity.
Peer comparison
Feb 29, 2024