Griffon Corporation (GFF)
Interest coverage
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 401,174 | 372,147 | 386,902 | 206,900 | 214,127 | -300,365 | -216,882 | -39,867 | -90,343 | 377,986 | 235,043 | 167,333 | 182,039 | 187,400 | 193,971 | 169,746 | 146,010 | 143,329 | 129,265 | 129,020 |
| Interest expense (ttm) | US$ in thousands | 104,086 | 104,749 | 103,366 | 102,096 | 101,445 | 98,436 | 96,817 | 93,346 | 84,379 | 76,916 | 68,743 | 63,166 | 63,175 | 64,107 | 64,983 | 66,023 | 66,544 | 66,785 | 67,348 | 67,994 |
| Interest coverage | 3.85 | 3.55 | 3.74 | 2.03 | 2.11 | -3.05 | -2.24 | -0.43 | -1.07 | 4.91 | 3.42 | 2.65 | 2.88 | 2.92 | 2.98 | 2.57 | 2.19 | 2.15 | 1.92 | 1.90 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $401,174K ÷ $104,086K
= 3.85
Griffon Corporation's interest coverage ratio has shown fluctuations over the past few quarters. The ratio indicates the company's ability to meet its interest obligations from its operating income.
In the most recent quarter, as of September 30, 2024, the interest coverage ratio stood at 3.85, which suggests that Griffon Corporation generated operating income 3.85 times larger than its interest expenses. This indicates a relatively healthy position and the ability to comfortably cover interest payments.
However, the trend in the previous quarters shows some volatility. In the March 31, 2023, and June 30, 2023 quarters, the interest coverage ratio was negative, indicating that the company's operating income was insufficient to cover its interest expenses during those periods.
It's worth noting that there has been an improvement in the interest coverage ratio since the negative figures in the previous year. This indicates that Griffon Corporation has taken steps to enhance its operating performance and manage its interest obligations more effectively.
Overall, while the recent interest coverage ratio appears healthy, investors should continue to monitor Griffon Corporation's performance to ensure the company can sustain its ability to meet its interest payments in the long term.