Grocery Outlet Holding Corp (GO)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 84,140 | 126,989 | 94,990 | 89,095 | 107,375 |
| Interest expense | US$ in thousands | 22,156 | 23,975 | 17,967 | 15,564 | 20,043 |
| Interest coverage | 3.80 | 5.30 | 5.29 | 5.72 | 5.36 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $84,140K ÷ $22,156K
= 3.80
The interest coverage ratio for Grocery Outlet Holding Corp has shown relatively stable performance over the past five years. The company's ability to cover its interest expenses with its earnings has been consistently strong, with the ratio ranging from 3.80 to 5.72 during this period. A higher interest coverage ratio indicates a greater ability to meet interest obligations using operating income.
Despite a slight dip in 2024, the company's interest coverage remains healthy overall, indicating that it has sufficient earnings to cover its interest expenses. Investors and creditors may view this stability positively as it suggests that Grocery Outlet Holding Corp has a solid financial position and is less vulnerable to financial distress arising from its interest obligations.
Peer comparison
Dec 31, 2024