Hayward Holdings Inc (HAYW)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 206,345 | 174,687 | 299,235 | 333,004 | 131,400 |
| Interest expense | US$ in thousands | 62,163 | 73,600 | 51,387 | 50,854 | 73,600 |
| Interest coverage | 3.32 | 2.37 | 5.82 | 6.55 | 1.79 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $206,345K ÷ $62,163K
= 3.32
Hayward Holdings Inc's interest coverage ratio has shown fluctuating trends over the past five years. In 2020, the interest coverage ratio was 1.79, indicating that the company's operating income was able to cover its interest expenses 1.79 times.
Subsequently, there was a significant improvement in 2021, with the interest coverage ratio increasing to 6.55, which suggests a more robust ability to cover interest payments. This was followed by a slight decrease in 2022 to 5.82, still reflective of a healthy interest coverage position.
However, in 2023, the interest coverage ratio dropped to 2.37, indicating a relative decrease in the company's ability to cover interest expenses from operating income. In the most recent year, 2024, the ratio improved to 3.32, but it remains lower than the levels seen in 2021 and 2022.
Overall, while there have been fluctuations in Hayward Holdings Inc's interest coverage ratio over the years, the company has shown some improvements and maintained a generally acceptable level of coverage to meet its interest obligations. Continued monitoring of this ratio will be essential to assess the company's financial health and its ability to service its debt effectively.
Peer comparison
Dec 31, 2024