J & J Snack Foods Corp (JJSF)
Interest coverage
| 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 119,810 | 121,671 | 119,066 | 110,671 | 109,518 | 89,421 | 62,387 | 56,282 | 61,799 | 65,459 | 82,343 | 85,485 | 71,218 | 49,881 | -7,683 | -3,931 | 17,194 | 44,326 | 102,788 | 116,577 |
| Interest expense (ttm) | US$ in thousands | 1,826 | 1,539 | 2,310 | 3,215 | 3,704 | 3,702 | 2,389 | 1,057 | 13 | 80 | 84 | 93 | 102 | 332 | 334 | 331 | 343 | 81 | 2,046 | 2,063 |
| Interest coverage | 65.61 | 79.06 | 51.54 | 34.42 | 29.57 | 24.15 | 26.11 | 53.25 | 4,753.77 | 818.24 | 980.27 | 919.19 | 698.22 | 150.24 | -23.00 | -11.88 | 50.13 | 547.23 | 50.24 | 56.51 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $119,810K ÷ $1,826K
= 65.61
The interest coverage ratio of J & J Snack Foods Corp has displayed significant fluctuations over the past few quarters. In the most recent quarter, as of September 30, 2024, the interest coverage ratio stood at 65.61, indicating that the company generated 65.61 times the amount of earnings before interest and taxes (EBIT) needed to cover its interest expenses.
Looking at the trend over the past few quarters, there has been a general improvement in the interest coverage ratio, with notable spikes in the ratio in June 30, 2024, and March 31, 2024. This improvement suggests that the company's ability to meet its interest obligations from its operating income has strengthened during these periods.
However, there were also several quarters where the interest coverage ratio was exceptionally high, such as in September 30, 2022, and December 31, 2021, where the ratio was 4,753.77 and 919.19, respectively. These exceptionally high ratios may be due to anomalies or errors in the financial data, as such high ratios are not typically seen in practical scenarios.
On the other hand, there were quarters where the interest coverage ratio fell significantly below 1, indicating that the company did not generate sufficient operating income to cover its interest expenses. For example, in March 31, 2021, and December 31, 2020, the interest coverage ratio was negative, implying that the company's earnings were insufficient to cover its interest obligations during those periods.
In summary, while J & J Snack Foods Corp has shown improvements in its interest coverage ratio in recent quarters, there have been instances of abnormally high ratios and periods of inadequate coverage. It is essential for investors and stakeholders to delve deeper into the reasons behind these fluctuations to assess the company's financial health accurately.