John B Sanfilippo & Son Inc (JBSS)
Interest coverage
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | Dec 23, 2021 | Sep 30, 2021 | Sep 23, 2021 | Jun 30, 2021 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 62,093 | 76,039 | 66,520 | 72,624 | 80,260 | 87,257 | 90,677 | 89,717 | 87,509 | 90,088 | 85,393 | 78,908 | 74,565 | 75,066 | 85,035 | 86,574 | 89,342 | 92,121 | 83,560 | 79,177 |
| Interest expense (ttm) | US$ in thousands | 3,552 | 2,825 | 2,555 | 2,838 | 2,549 | 2,398 | 2,165 | 1,725 | 2,159 | 2,427 | 2,406 | 2,211 | 1,970 | 1,742 | 1,582 | 1,468 | 1,357 | 1,362 | 1,441 | 1,605 |
| Interest coverage | 17.48 | 26.92 | 26.04 | 25.59 | 31.49 | 36.39 | 41.88 | 52.01 | 40.53 | 37.12 | 35.49 | 35.69 | 37.85 | 43.09 | 53.75 | 58.97 | 65.84 | 67.64 | 57.99 | 49.33 |
June 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $62,093K ÷ $3,552K
= 17.48
The interest coverage ratio for John B Sanfilippo & Son Inc. has demonstrated considerable variability over the reported periods, reflecting fluctuations in the company's ability to meet interest obligations from its earnings before interest and taxes (EBIT).
Starting from March 31, 2021, the ratio was notably high at 49.33, indicating that the company's EBIT was approximately 49 times its interest expense, signifying a robust capacity to service interest obligations. This elevated level persisted through several periods, peaking at 67.64 on September 23, 2021, and maintaining generally strong coverage levels through the end of 2021.
During 2022, the ratio experienced a decline, reaching a low of 35.49 on December 31, 2022. This downward trend continued into the first half of 2023, with the ratio decreasing to 37.12 in March 2023 and further to 40.53 in June 2023, although these levels remained comfortably above 1.0, indicating ongoing ability to meet interest expenses with EBIT.
However, in the latter half of 2023, there was a notable increase in the interest coverage ratio, rising to 52.01 at September 30, 2023. Yet, the ratio then showed a decline afterward, falling to 41.88 by December 31, 2023. Moving into 2024, the coverage ratio continued to weaken, with values of 36.39 in March and 31.49 in June, suggesting a reduction in EBIT relative to interest expense.
In the most recent period reported, September 30, 2024, the ratio was 25.59, further decreasing to 26.04 at December 31, 2024, and then to 26.92 in March 2025. The lowest ratio in the series was recorded on June 30, 2025, at 17.48, representing a significant decline from earlier levels but still indicating that EBIT exceeds interest expenses by a comfortable margin.
Overall, the interest coverage ratio for John B Sanfilippo & Son Inc. has historically been strong, well above the critical threshold of 1.0, thus implying that the company has generally maintained a solid capacity to service its interest obligations. Nonetheless, the observed downward trend in recent periods warrants attention, as continued declines could potentially signal increasing leverage or decreasing earnings, which could impact financial stability in the longer term.
Peer comparison
Jun 30, 2025