Haverty Furniture Companies Inc (HVT)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 67,126 | 117,839 | 118,250 | 111,504 | 27,774 |
| Interest expense | US$ in thousands | — | 1,618 | 152 | -126 | 1,287 |
| Interest coverage | — | 72.83 | 777.96 | — | 21.58 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $67,126K ÷ $—K
= —
The interest coverage ratio for Haverty Furniture Companies Inc has fluctuated over the past five years. In 2023 and 2020, the specific interest coverage values are not available. However, in 2022, the interest coverage ratio was robust at 72.83, indicating that the company's operating income was sufficient to cover its interest expenses approximately 72 times over.
The significant spike in interest coverage to 777.96 in 2021 indicates a substantial increase in operating income relative to interest expenses, demonstrating strong financial health and a low risk of default on debt obligations during that period. The substantial improvement from 2019's interest coverage ratio of 21.58 suggests that the company has implemented effective strategies to enhance its profitability and effectively manage its interest obligations.
Overall, the trend in interest coverage ratios reflects variability in Haverty Furniture Companies Inc's ability to cover interest payments with its operating income, with a particularly strong performance in 2021. However, the availability of data for 2023 and 2020 would provide a more comprehensive understanding of the company's recent financial performance in terms of interest coverage.
Peer comparison
Dec 31, 2023