Hayward Holdings Inc (HAYW)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 215,702 | 199,907 | 195,571 | 196,491 | 194,538 | 172,523 | 180,994 | 224,398 | 303,679 | 364,913 | 391,394 | 354,106 | 317,915 | 263,339 | 236,297 | 200,597 | 134,297 | 112,617 | 94,700 | 78,650 |
| Interest expense (ttm) | US$ in thousands | 64,854 | 73,385 | 74,933 | 77,264 | 78,033 | 72,221 | 68,711 | 61,186 | 51,387 | 43,662 | 40,774 | 42,169 | 50,907 | 61,781 | 67,777 | 72,277 | 73,577 | 75,271 | 79,350 | 82,975 |
| Interest coverage | 3.33 | 2.72 | 2.61 | 2.54 | 2.49 | 2.39 | 2.63 | 3.67 | 5.91 | 8.36 | 9.60 | 8.40 | 6.25 | 4.26 | 3.49 | 2.78 | 1.83 | 1.50 | 1.19 | 0.95 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $215,702K ÷ $64,854K
= 3.33
Hayward Holdings Inc's interest coverage ratio has shown a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
The interest coverage ratio has improved steadily from 0.95 on March 31, 2020, to 3.33 on December 31, 2024. This indicates that the company's operating income has been consistently sufficient to cover its interest expenses, with the ratio peaking at 9.60 on June 30, 2022.
However, there was a notable decline in the interest coverage ratio in the later quarters of 2022 and into 2023, dropping to as low as 2.39 on September 30, 2023. This may suggest a potential strain on the company's ability to cover its interest payments with its operating income during that period.
Overall, Hayward Holdings Inc's interest coverage ratio has shown resilience and improvement over the analyzed period, with some fluctuations along the way. It is important for the company to maintain a healthy interest coverage ratio to ensure its financial stability and ability to meet its debt obligations.
Peer comparison
Dec 31, 2024