The Hain Celestial Group Inc (HAIN)

Interest coverage

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	-18,948	-85,620	104,681	107,380	56,042
Interest expense	US$ in thousands	57,213	45,783	12,570	8,654	18,258
Interest coverage		-0.33	-1.87	8.33	12.41	3.07

June 30, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $-18,948K ÷ $57,213K
= -0.33

The interest coverage ratio for The Hain Celestial Group Inc has exhibited fluctuations over the past five years.

In June 2020, the company's interest coverage ratio was 3.07, indicating that the company generated 3.07 times the earnings required to cover its interest expenses. This ratio decreased significantly in June 2021 to 12.41, highlighting a strong improvement in the company's ability to cover its interest payments.

However, in June 2022, the interest coverage ratio further increased to 8.33, indicating a slight dip compared to the previous year. Subsequently, there was a significant decline in June 2023, with an interest coverage ratio of -1.87, suggesting that the company's earnings were insufficient to cover its interest expenses.

The most recent data in June 2024 shows a further decline in the interest coverage ratio to -0.33. This negative ratio indicates that the company's earnings were inadequate to cover its interest obligations, potentially signaling financial distress or operational challenges.

Overall, the downward trend observed in the interest coverage ratio from 2021 to 2024 raises concerns about The Hain Celestial Group Inc's ability to meet its interest payments from its earnings. This necessitates a closer examination of the company's financial management and operational performance to address the declining trend in interest coverage.