The Hain Celestial Group Inc (HAIN)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-18,948	-18,866	-131,891	-103,721	-85,620	-85,765	90,325	94,957	104,681	134,298	148,711	129,647	107,380	91,075	60,633	56,867	56,042	28,140	27,997	-2,074
Interest expense (ttm)	US$ in thousands	57,213	57,382	56,676	51,350	45,783	36,808	26,611	18,391	12,570	9,506	8,312	8,057	8,654	10,010	12,017	9,700	7,268	14,244	19,597	28,394
Interest coverage		-0.33	-0.33	-2.33	-2.02	-1.87	-2.33	3.39	5.16	8.33	14.13	17.89	16.09	12.41	9.10	5.05	5.86	7.71	1.98	1.43	-0.07

June 30, 2024 calculation

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

The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates that the company is more capable of meeting its interest obligations.

Analyzing The Hain Celestial Group Inc's interest coverage over the past few quarters, we see significant fluctuations. In the most recent quarter, the interest coverage ratio was -0.33, indicating that the company's operating income was insufficient to cover its interest expenses. This raises concerns about the company's ability to meet its debt obligations.

Looking back over the previous quarters, the interest coverage ratio has shown volatility, ranging from negative values to positive values. The ratio peaked at 17.89 in the quarter ending March 31, 2022, indicating a strong ability to cover interest payments. However, the ratio has since declined, with values fluctuating in the subsequent quarters.

Overall, The Hain Celestial Group Inc's interest coverage ratio has shown inconsistency, with periods of both strength and weakness. It will be important for the company to improve its operating performance and manage its debt levels effectively to ensure it can meet its interest obligations in the long term.