Hayward Holdings Inc (HAYW)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 175,222 | 155,796 | 167,227 | 207,000 | 285,573 | 329,036 | 366,490 | 344,693 | 317,974 |
| Interest expense (ttm) | US$ in thousands | 29,165 | 37,039 | 36,657 | 18,180 | -356 | -497 | -813 | -592 | -38 |
| Interest coverage | 6.01 | 4.21 | 4.56 | 11.39 | — | — | — | — | — |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $175,222K ÷ $29,165K
= 6.01
The interest coverage ratio for Hayward Holdings Inc has shown a general declining trend over the past eight quarters, indicating a decrease in the company's ability to cover its interest expenses with its earnings. In Q4 2023, the interest coverage ratio was 2.56, which means that the company generated earnings 2.56 times greater than its interest expenses during that period. This ratio has decreased from a high of 9.50 in Q2 2022 to the current level, reflecting a potential strain on the company's ability to meet its interest obligations from its operating profits. It is essential for investors and creditors to monitor this trend closely as declining interest coverage ratios could signal financial distress for the company.
Peer comparison
Dec 31, 2023