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.