Lancaster Colony Corporation (LANC)
Interest coverage
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 199,363 | 169,150 | 163,412 | 148,985 | 141,508 | 163,744 | 126,719 | 120,698 | 111,911 | 119,118 | 164,123 | 177,415 | 185,852 | 185,110 | 177,712 | 173,192 | 175,948 | 179,093 | 186,431 | 193,508 |
| Interest expense (ttm) | US$ in thousands | 0 | 815 | 1,422 | 1,900 | 2,170 | 10,723 | 52,843 | 52,365 | 52,095 | 42,727 | 0 | 0 | 0 | 16 | 34 | 53 | 73 | 76 | 77 | 58 |
| Interest coverage | — | 207.55 | 114.92 | 78.41 | 65.21 | 15.27 | 2.40 | 2.30 | 2.15 | 2.79 | — | — | — | 11,569.38 | 5,226.82 | 3,267.77 | 2,410.25 | 2,356.49 | 2,421.18 | 3,336.34 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $199,363K ÷ $0K
= —
The interest coverage ratio for Lancaster Colony Corporation fluctuated significantly over the periods provided. The ratio indicates the company's ability to meet its interest obligations with its operating income.
Looking at the data, we can see that there were periods with very high interest coverage ratios, such as Jun 30, 2024, where the ratio was 207.55, indicating a strong ability to cover interest expenses. On the other hand, there were periods with much lower ratios, such as Dec 31, 2022, where the ratio was only 2.30, suggesting that the company's operating income was not sufficient to cover its interest expenses comfortably.
The significant increase from the Mar 31, 2021, ratio of 11,569.38 to the subsequent periods is likely an anomaly or data error, as such a dramatic increase is highly unusual and not reflective of normal operations.
Overall, fluctuations in the interest coverage ratio may indicate changes in the company's financial health and ability to manage its debt obligations. Investors and analysts should closely monitor these ratios to assess the company's financial stability and risk.
Peer comparison
Jun 30, 2024