Haynes International Inc (HAYN)
Interest coverage
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 59,667 | 59,496 | 62,795 | 70,697 | 64,974 | 60,095 | 44,282 | 23,772 | 7,897 | -8,597 | -19,871 | -30,609 | -20,722 | -6,166 | 8,697 | 23,957 | 20,487 | 14,356 | 11,069 | 4,134 |
| Interest expense (ttm) | US$ in thousands | 8,332 | 7,594 | 6,439 | 5,033 | 3,682 | 2,481 | 1,850 | 1,398 | 1,182 | 1,186 | 1,268 | 1,387 | 1,385 | 1,332 | 1,194 | 1,008 | 996 | 986 | 987 | 984 |
| Interest coverage | 7.16 | 7.83 | 9.75 | 14.05 | 17.65 | 24.22 | 23.94 | 17.00 | 6.68 | -7.25 | -15.67 | -22.07 | -14.96 | -4.63 | 7.28 | 23.77 | 20.57 | 14.56 | 11.21 | 4.20 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $59,667K ÷ $8,332K
= 7.16
Interest coverage is a key financial ratio that measures a company's ability to meet its interest payments on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense.
Based on the data provided for Haynes International Inc. from Q2 2022 to Q1 2024, the trend in interest coverage shows a general decrease over time, indicating a potential deterioration in the company's ability to cover its interest expenses.
The interest coverage ratio ranged from a high of 22.64 in Q3 2022 to a low of 6.98 in Q1 2024. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations. Therefore, the decreasing trend in the interest coverage ratio may raise concerns about the company's financial health and ability to meet its interest payments.
It is advisable for investors and stakeholders to closely monitor this trend and consider the company's overall financial performance and debt levels to assess any potential risks associated with its ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023