Hawkins Inc (HWKN)
Interest coverage
| Mar 31, 2024 | 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 104,036 | 102,435 | 99,228 | 92,773 | 88,150 | 84,876 | 83,868 | 76,940 | 71,194 | 68,860 | 65,090 | 62,058 | 55,878 | 50,760 | 47,047 | 43,648 | 41,671 | 39,702 | 39,647 | 37,301 |
| Interest expense (ttm) | US$ in thousands | 3,033 | 4,409 | 4,787 | 5,453 | 5,234 | 4,267 | 3,038 | 1,984 | 1,404 | 1,361 | 1,426 | 1,436 | 1,467 | 1,124 | 765 | 450 | 93 | 94 | 101 | 111 |
| Interest coverage | 34.30 | 23.23 | 20.73 | 17.01 | 16.84 | 19.89 | 27.61 | 38.78 | 50.71 | 50.60 | 45.65 | 43.22 | 38.09 | 45.16 | 61.50 | 97.00 | 448.08 | 422.36 | 392.54 | 336.05 |
March 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $104,036K ÷ $3,033K
= 34.30
The interest coverage ratio for Hawkins Inc has displayed fluctuations over the past few quarters. The ratio indicates the company's ability to cover its interest expenses with its operating income.
From December 2019 to March 2020, the interest coverage ratio showed a significant increase from 336.05 to 448.08, indicating a strong ability to cover its interest expenses. However, this high ratio in March 2020 may have been influenced by specific factors rather than a sustainable trend.
Subsequently, the interest coverage ratio declined over the following quarters but remained at levels above 15, indicating that the company was still able to cover its interest expenses by its operating income.
The recent ratios, such as 34.30 in March 2024, 23.23 in December 2023, and 20.73 in September 2023, show a decrease compared to the peak in March 2020 but were still at healthy levels.
Overall, despite some fluctuations, the interest coverage ratio for Hawkins Inc suggests that the company has been effectively managing its interest expenses with its operating income, indicating a solid financial position in terms of meeting its debt obligations.
Peer comparison
Mar 31, 2024