Hawkins Inc (HWKN)
Interest coverage
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 104,036 | 88,150 | 71,194 | 55,878 | 41,671 |
| Interest expense | US$ in thousands | — | 5,234 | 1,404 | 1,467 | 93 |
| Interest coverage | — | 16.84 | 50.71 | 38.09 | 448.08 |
March 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $104,036K ÷ $—K
= —
Hawkins Inc's interest coverage ratio has exhibited significant fluctuations over the past five years. The interest coverage ratio measures the company's ability to meet interest payments on its outstanding debt using its operating income. In 2020, Hawkins Inc had an exceptionally high interest coverage ratio of 448.08, indicating a strong ability to cover its interest expenses with operating income.
However, there was a notable decline in the interest coverage ratio in subsequent years. The ratio decreased to 38.09 in 2021, indicating a smaller buffer to cover interest payments compared to the previous year. In 2022, the interest coverage ratio improved to 50.71, showing a partial recovery in the company's ability to meet its interest obligations.
The most recent data for 2023 reveals an interest coverage ratio of 16.84, which suggests a further decline in Hawkins Inc's ability to cover interest expenses with its operating income compared to the previous year. Notably, the absence of data for the current year (2024) makes it challenging to provide a comprehensive analysis of the company's current financial health in terms of its interest coverage ratio.
Overall, Hawkins Inc's interest coverage ratio has experienced fluctuations over the years, indicating varying levels of ability to meet interest payments with operating income. Monitoring this ratio going forward will be essential to assess the company's financial stability and ability to manage its debt obligations.
Peer comparison
Mar 31, 2024