John B Sanfilippo & Son Inc (JBSS)
Interest coverage
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 82,486 | 87,509 | 83,617 | 81,260 | 74,716 |
| Interest expense | US$ in thousands | 2,549 | 2,159 | 1,921 | 1,441 | 2,005 |
| Interest coverage | 32.36 | 40.53 | 43.53 | 56.39 | 37.26 |
June 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $82,486K ÷ $2,549K
= 32.36
The interest coverage ratio for John B Sanfilippo & Son Inc has shown a decreasing trend over the past five years, decreasing from 56.39 in June 2021 to 32.36 in June 2024. Despite this decline, the company's interest coverage remains relatively high, indicating that the company is comfortably able to meet its interest obligations using its earnings before interest and taxes (EBIT).
The consistently high interest coverage ratios in the range of 32.36 to 56.39 suggest that John B Sanfilippo & Son Inc has a strong ability to pay off its interest expenses with its operating profits. A higher interest coverage ratio is generally viewed positively by investors and creditors as it implies a lower risk of default on debt obligations.
However, the decreasing trend in the interest coverage ratio over the years may warrant further investigation into the company's financial health and the sustainability of its earnings in relation to its debt obligations. It's important to monitor this ratio over time to ensure that the company's financial position remains stable and that it continues to generate sufficient earnings to cover its interest expenses.
Peer comparison
Jun 30, 2024