GMS Inc (GMS)
Interest coverage
| 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 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 449,627 | 464,106 | 481,364 | 509,663 | 513,346 | 513,968 | 506,576 | 464,247 | 422,916 | 360,143 | 297,409 | 234,806 | 190,880 | 115,027 | 109,907 | 114,260 | 114,043 | 172,588 | 169,202 | 166,731 |
| Interest expense (ttm) | US$ in thousands | 75,461 | 74,624 | 72,783 | 70,096 | 65,843 | 61,926 | 60,412 | 59,101 | 58,097 | 56,556 | 54,581 | 53,362 | 53,786 | 56,468 | 59,488 | 63,522 | 67,718 | 71,091 | 74,143 | 75,766 |
| Interest coverage | 5.96 | 6.22 | 6.61 | 7.27 | 7.80 | 8.30 | 8.39 | 7.86 | 7.28 | 6.37 | 5.45 | 4.40 | 3.55 | 2.04 | 1.85 | 1.80 | 1.68 | 2.43 | 2.28 | 2.20 |
April 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $449,627K ÷ $75,461K
= 5.96
The interest coverage ratio for GMS Inc has shown some fluctuations over the past few years. It indicates the company's ability to pay interest expenses on its outstanding debt.
From April 2019 to July 2022, the interest coverage ratio consistently improved from 2.28 to 8.39, reflecting a strengthening ability to cover interest payments. However, there was a decline in the ratio from July 2022 to April 2024, dropping to a range between 5.96 and 6.61.
While the recent decline in the interest coverage ratio may indicate a slightly decreased capacity to cover interest expenses, the overall trend still exhibits a positive trajectory compared to the earlier periods. It would be important for GMS Inc to monitor this ratio closely to ensure it remains at a healthy level to meet its interest payment obligations.
Peer comparison
Apr 30, 2024