Hayward Holdings Inc (HAYW)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 94,003 | 233,881 | 260,103 |
| Interest expense | US$ in thousands | -7,084 | -356 | -38 |
| Interest coverage | — | — | — |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $94,003K ÷ $-7,084K
= —
Hayward Holdings Inc's interest coverage ratio has been showing a declining trend over the past three years, decreasing from 6.55 in 2021 to 5.72 in 2022, and further dropping to 2.56 in 2023. This indicates that the company's ability to cover its interest expenses with its operating income has weakened over time. A declining interest coverage ratio could suggest that the company may be taking on more debt relative to its earnings, potentially increasing its financial risk. It is essential for investors and stakeholders to closely monitor the company's financial health and debt management strategies, especially in light of the decreasing trend in the interest coverage ratio.
Peer comparison
Dec 31, 2023