Greif Bros Corporation (GEF)
Interest coverage
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 456,400 | 458,600 | 439,500 | 422,700 | 502,000 | 594,800 | 636,700 | 681,700 | 672,800 | 588,300 | 577,700 | 553,200 | 581,000 | 572,500 | 526,700 | 413,600 | 286,200 | 303,300 | 325,000 | 391,400 |
| Interest expense (ttm) | US$ in thousands | 148,400 | 136,800 | 122,400 | 106,400 | 99,600 | 96,300 | 88,400 | 77,100 | 66,900 | 61,200 | 61,200 | 71,100 | 84,600 | 92,700 | 101,800 | 107,700 | 110,300 | 115,800 | 122,200 | 126,900 |
| Interest coverage | 3.08 | 3.35 | 3.59 | 3.97 | 5.04 | 6.18 | 7.20 | 8.84 | 10.06 | 9.61 | 9.44 | 7.78 | 6.87 | 6.18 | 5.17 | 3.84 | 2.59 | 2.62 | 2.66 | 3.08 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $456,400K ÷ $148,400K
= 3.08
Greif Bros Corporation's interest coverage ratio has displayed a fluctuating trend over the periods provided. The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income.
From April 30, 2020, to January 31, 2022, the interest coverage ratio gradually improved, indicating that Greif Bros was more capable of covering its interest expenses from its operating profits. The ratio increased from 3.08 in April 2020 to 6.87 in January 2022, reflecting a positive trend in the company's ability to manage its interest payments.
However, from April 30, 2022, onwards, there was a slight decline in the interest coverage ratio. While the ratio remained above 5 during this period, the decreasing trend suggests that Greif Bros may have experienced challenges in generating sufficient operating income to cover its interest expenses.
In conclusion, Greif Bros Corporation's interest coverage ratio has shown both improvement and slight decline over the periods provided, indicating fluctuations in the company's ability to meet its interest obligations from its operating profits. It would be essential for the company to closely monitor this ratio to ensure sustainable financial health.