LCI Industries (LCII)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 123,428 | 553,028 | 398,410 | 222,934 | 200,210 |
| Interest expense | US$ in thousands | 40,424 | 27,573 | 16,366 | 13,453 | 8,796 |
| Interest coverage | 3.05 | 20.06 | 24.34 | 16.57 | 22.76 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $123,428K ÷ $40,424K
= 3.05
The interest coverage ratio for LCI Industries has shown a declining trend over the last five years. In 2023, the interest coverage ratio decreased to 3.05 from 20.06 in 2022, suggesting that the company's ability to cover its interest expenses with operating income has weakened significantly. This decline may raise concerns about the company's financial health and the sustainability of its debt obligations. Further analysis is warranted to understand the factors contributing to this decreasing trend and to assess the overall risk associated with the company's debt servicing capabilities.
Peer comparison
Dec 31, 2023