Grocery Outlet Holding Corp (GO)
Interest coverage
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 51,602 | 58,065 | 83,151 | 93,527 | 125,782 | 130,820 | 117,950 | 108,380 | 94,990 | 86,457 | 87,913 | 84,676 | 89,095 | 101,492 | 105,664 | 114,349 | 107,375 | 97,113 | 90,746 | 64,684 |
| Interest expense (ttm) | US$ in thousands | 25,717 | 22,780 | 20,567 | 18,477 | 18,956 | 20,523 | 21,095 | 20,204 | 17,906 | 16,080 | 14,871 | 14,918 | 15,203 | 15,523 | 16,767 | 18,115 | 20,043 | 22,632 | 25,087 | 35,269 |
| Interest coverage | 2.01 | 2.55 | 4.04 | 5.06 | 6.64 | 6.37 | 5.59 | 5.36 | 5.30 | 5.38 | 5.91 | 5.68 | 5.86 | 6.54 | 6.30 | 6.31 | 5.36 | 4.29 | 3.62 | 1.83 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $51,602K ÷ $25,717K
= 2.01
The interest coverage ratio for Grocery Outlet Holding Corp has shown fluctuations over the past few years. The ratio indicates the company's ability to meet its interest obligations with its operating income. From March 31, 2020, to December 31, 2020, the interest coverage ratio improved steadily from 1.83 to 5.36, indicating a stronger ability to cover interest expenses.
During the first half of 2021, the ratio remained relatively stable, ranging between 5.86 and 6.31, demonstrating a consistent ability to cover interest costs. However, in the second half of 2021 and throughout 2022, the ratio experienced some fluctuations, ranging between 5.30 and 6.54, but generally staying above 5, indicating a healthy interest coverage.
By March 31, 2023, the interest coverage ratio had reached 5.36, showing a slight increase from the previous quarter. Throughout the rest of 2023, the ratio continued to improve, reaching 6.64 by December 31, 2023, indicating a strong ability to cover interest expenses.
However, in the first half of 2024, the interest coverage ratio started to decline, dropping to 4.04 by June 30, 2024, and further down to 2.01 by December 31, 2024. This decline suggests a potential decrease in the company's ability to cover its interest obligations with its operating income during that period.
Overall, while Grocery Outlet Holding Corp demonstrated a generally healthy interest coverage ratio throughout the period analyzed, the significant decline in the ratio in the second half of 2024 warrants further monitoring to ensure the company's ability to meet its interest obligations in the future.
Peer comparison
Dec 31, 2024