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

Company name
Symbol
Interest coverage
Hayward Holdings Inc
HAYW
6.01
Middleby Corp
MIDD
4.94
Standex International Corporation
SXI
21.82
Tennant Company
TNC
10.27