Acushnet Holdings Corp (GOLF)
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 | 304,378 | 285,230 | 273,447 | 254,553 | 125,845 |
| Interest expense | US$ in thousands | 54,711 | 43,630 | 13,269 | 7,709 | 15,630 |
| Interest coverage | 5.56 | 6.54 | 20.61 | 33.02 | 8.05 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $304,378K ÷ $54,711K
= 5.56
Based on the provided data, Acushnet Holdings Corp's interest coverage ratio has fluctuated over the past five years. As of December 31, 2020, the company had an interest coverage ratio of 8.05, indicating that it was generating enough operating income to cover its interest expenses approximately eight times.
By December 31, 2021, the interest coverage ratio had improved significantly to 33.02, suggesting a substantial increase in the company's ability to cover its interest payments. This could be a positive sign of improved financial health or increased profitability.
In the following years, Acushnet Holdings Corp maintained relatively strong interest coverage ratios, with values of 20.61 as of December 31, 2022, 6.54 as of December 31, 2023, and 5.56 as of December 31, 2024. While the ratios decreased in the latter years, they still indicate that the company's operating income was generally sufficient to meet its interest obligations, although to a lesser extent compared to the peak in 2021.
Overall, variations in Acushnet Holdings Corp's interest coverage ratio suggest fluctuations in its ability to service its debt obligations with operating income. Investors and stakeholders may monitor these changes to assess the company's financial stability and risk levels.
Peer comparison
Dec 31, 2024