Lancaster Colony Corporation (LANC)
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 | 199,363 | 141,508 | 111,911 | 185,852 | 175,948 |
| Interest expense | US$ in thousands | 66 | 97 | 153 | 156 | 73 |
| Interest coverage | 3,020.65 | 1,458.85 | 731.44 | 1,191.36 | 2,410.25 |
June 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $199,363K ÷ $66K
= 3,020.65
The interest coverage ratio for Lancaster Colony Corporation has shown a fluctuating trend over the past five years. In the most recent fiscal year ending on June 30, 2024, the interest coverage ratio significantly increased to 3,020.65, reflecting a substantial improvement in the company's ability to cover its interest expenses with its operating income.
In the preceding years, the interest coverage ratio experienced fluctuations, with the ratio being 1,458.85 in 2023, 731.44 in 2022, 1,191.36 in 2021, and 2,410.25 in 2020. These fluctuations indicate possible variations in the company's earnings and its ability to meet its interest obligations.
The significant increase in the interest coverage ratio in 2024 suggests that Lancaster Colony Corporation is currently generating significantly more operating income relative to its interest expenses compared to previous years. This improved interest coverage ratio signifies a stronger financial position and indicates that the company has a healthier ability to meet its interest payment obligations using its operating earnings.
Peer comparison
Jun 30, 2024