Greenbrier Companies Inc (GBX)
Interest coverage
| Aug 31, 2024 | May 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 324,500 | 263,800 | 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 |
| Interest expense (ttm) | US$ in thousands | 95,200 | 91,000 | 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 |
| Interest coverage | 3.41 | 2.90 | 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 |
August 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $324,500K ÷ $95,200K
= 3.41
The interest coverage ratio for Greenbrier Companies Inc has exhibited fluctuations over the recent quarters. The ratio has ranged from 0.44 to 5.64 over the past eight quarters.
A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations from its operating profits. This can be seen in the higher ratios of 3.41, 2.90, 2.79, 2.16, 2.08, 2.17, 1.49, 2.85, 3.94, 5.64. Conversely, lower ratios such as 0.91, 0.44, and 0.44 suggest that the company's operating profits may be insufficient to cover its interest expenses comfortably during those periods.
It is important for investors and creditors to closely monitor the trend in the interest coverage ratio to assess the company's ability to meet its debt obligations. Overall, Greenbrier Companies Inc's interest coverage ratios show variability, indicating fluctuations in its ability to cover interest expenses with operating profits.
Peer comparison
Aug 31, 2024