Acushnet Holdings Corp (GOLF)
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 | 304,194 | 284,447 | 280,985 | 280,188 | 283,502 | 316,948 | 322,634 | 303,948 | 284,072 | 252,433 | 219,689 | 241,737 | 256,891 | 305,935 | 339,194 | 242,051 | 155,403 | 167,832 | 124,756 | 172,600 |
| Interest expense (ttm) | US$ in thousands | 40,367 | 51,682 | 47,884 | 44,729 | 41,549 | 39,783 | 34,928 | 26,070 | 17,451 | 9,000 | 5,613 | 5,370 | 7,709 | 9,885 | 12,569 | 15,123 | 15,630 | 31,969 | 32,642 | 33,453 |
| Interest coverage | 7.54 | 5.50 | 5.87 | 6.26 | 6.82 | 7.97 | 9.24 | 11.66 | 16.28 | 28.05 | 39.14 | 45.02 | 33.32 | 30.95 | 26.99 | 16.01 | 9.94 | 5.25 | 3.82 | 5.16 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $304,194K ÷ $40,367K
= 7.54
Based on the interest coverage data provided for Acushnet Holdings Corp, we observe fluctuations in the company's ability to meet its interest obligations over the reporting periods.
The interest coverage ratio measures the company's ability to pay interest expenses on its outstanding debt. A higher interest coverage ratio indicates a greater ability to meet interest payments from operating earnings.
From March 31, 2020, to December 31, 2021, Acushnet Holdings Corp's interest coverage ratio showed a positive trend, increasing steadily from 5.16 to 33.32. This indicates an improving ability to cover interest expenses with operating profits during this period.
However, from March 31, 2022, to December 31, 2024, we observe a declining trend in the interest coverage ratio, falling from 45.02 to 7.54. This downward trend may raise concerns about the company's ability to service its debt obligations from its operating income.
It is essential for stakeholders to monitor these fluctuations in the interest coverage ratio closely as they indicate the company's financial health and its ability to manage debt effectively. Further analysis and scrutiny of Acushnet Holdings Corp's financial performance and debt management strategies would be crucial in assessing its overall financial sustainability.
Peer comparison
Dec 31, 2024