MarineMax Inc (HZO)
Interest coverage
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 200,606 | 265,204 | 209,459 | 106,715 | 60,532 |
| Interest expense | US$ in thousands | 53,367 | 3,283 | 3,665 | 9,275 | 11,579 |
| Interest coverage | 3.76 | 80.78 | 57.15 | 11.51 | 5.23 |
September 30, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $200,606K ÷ $53,367K
= 3.76
The interest coverage ratio measures a company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). Marinemax, Inc.'s interest coverage has fluctuated over the past five years, ranging from 3.76 in 2023 to 80.78 in 2022. A higher ratio suggests that the company can more easily meet its interest payments from its EBIT. The significant increase in 2022 indicates improved ability to cover interest expenses. However, the substantial decline in 2023 raises concerns about potential difficulties in meeting interest obligations with current earnings. It is important for investors and creditors to monitor this trend, as lower interest coverage may indicate increased financial risk for the company.
Peer comparison
Sep 30, 2023