Griffon Corporation (GFF)

Griffon Corporation's interest coverage has shown varying trends over the past five years. In 2024, the interest coverage ratio improved to 3.83, indicating that the company's operating income was able to cover its interest expenses nearly four times over. This suggests a good ability to meet interest obligations and indicates a lower risk of default on debt payments.

In contrast, the interest coverage ratio was at 2.11 in 2023, showing a slight decline from the previous year. Despite it being above 1, which generally indicates that the company is generating enough operating income to cover its interest expenses, a ratio around or below 2 may raise concerns about the company's ability to comfortably cover its debt obligations.

In 2022, Griffon Corporation had a negative interest coverage ratio of -1.07. This indicates that the company's operating income was insufficient to cover its interest expenses, raising red flags about the sustainability of its debt structure. Negative interest coverage can indicate financial distress and potentially lead to default on debt payments.

The interest coverage ratio recovered to 2.88 in 2021 and was at 2.19 in 2020, showing a reasonable ability to cover interest expenses but still leaving room for improvement.

Overall, monitoring Griffon Corporation's interest coverage ratio is crucial for assessing the company's financial health and its ability to meet debt obligations. An improving trend, as seen in 2024, is positive, while negative or declining ratios require further investigation into the company's financial position and risk management.