Helen of Troy Ltd (HELE)
Interest coverage
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 262,107 | 248,655 | 218,746 | 218,812 | 212,040 | 208,722 | 221,616 | 241,879 | 272,810 | 246,995 | 257,705 | 289,769 | 282,047 | 254,739 | 233,298 | 188,521 | 178,645 | 225,122 | 202,222 | 198,358 |
| Interest expense (ttm) | US$ in thousands | 53,065 | 54,628 | 54,918 | 50,430 | 40,751 | 30,024 | 20,081 | 14,222 | 12,844 | 12,557 | 12,277 | 11,766 | 12,617 | 12,982 | 12,823 | 13,243 | 12,705 | 12,597 | 12,801 | 12,340 |
| Interest coverage | 4.94 | 4.55 | 3.98 | 4.34 | 5.20 | 6.95 | 11.04 | 17.01 | 21.24 | 19.67 | 20.99 | 24.63 | 22.35 | 19.62 | 18.19 | 14.24 | 14.06 | 17.87 | 15.80 | 16.07 |
February 29, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $262,107K ÷ $53,065K
= 4.94
Helen of Troy Ltd's interest coverage ratio has shown fluctuations over the past several reporting periods. The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt using its operating income.
The trend for Helen of Troy Ltd's interest coverage ratio indicates that the company has generally been able to cover its interest expenses comfortably. The ratio has ranged from a low of 3.98 in August 2023 to a high of 24.63 in May 2021.
A higher interest coverage ratio signifies that the company is more capable of servicing its debt obligations from its operating income. Helen of Troy Ltd's interest coverage ratio has been above 4 in most periods, indicating a relatively healthy ability to meet its interest payments.
Overall, the trend in Helen of Troy Ltd's interest coverage ratio reflects a strong ability to cover interest expenses, although there have been some fluctuations over time. Investors and creditors may view the company positively due to its consistent ability to meet its interest obligations.