Grocery Outlet Holding Corp (GO)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 125,782 | 94,990 | 89,095 | 107,375 | 68,343 |
| Interest expense | US$ in thousands | 22,908 | 19,092 | 14,374 | 19,358 | 47,940 |
| Interest coverage | 5.49 | 4.98 | 6.20 | 5.55 | 1.43 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $125,782K ÷ $22,908K
= 5.49
The interest coverage ratio for Grocery Outlet Holding Corp has shown a generally positive trend over the past five years, indicating the company's ability to meet its interest payment obligations using its operating income. The ratio has improved steadily from 1.43 in 2019 to 5.49 in 2023. This suggests that the company's earnings before interest and taxes (EBIT) have been sufficient to cover its interest expenses, with a peak coverage ratio of 6.20 in 2021. This trend indicates a strengthening financial position in terms of the company's ability to service its debt obligations through operating profits.
Peer comparison
Dec 31, 2023