LCI Industries (LCII)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 123,428 | 553,028 | 398,410 | 222,934 |
| Interest expense | US$ in thousands | 28,899 | 40,424 | 27,573 | 16,366 | 13,453 |
| Interest coverage | 0.00 | 3.05 | 20.06 | 24.34 | 16.57 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $28,899K
= 0.00
The interest coverage ratio for LCI Industries shows a fluctuating trend over the years. In 2020, the interest coverage was 16.57, indicating the company's ability to cover its interest expenses 16.57 times over. This ratio improved significantly to 24.34 in 2021, which suggests a stronger ability to meet interest obligations. However, there was a slight decline in 2022 to 20.06, which is still at a healthy level.
The most concerning trend is seen in 2023 with an interest coverage ratio of 3.05, a significant drop from the previous years. This indicates that the company's ability to cover interest payments decreased substantially. Moreover, reaching an interest coverage ratio of 0.00 in 2024 implies that the company may not have been able to cover its interest expenses at all.
Overall, the trend in LCI Industries' interest coverage over the years shows fluctuations, with notable improvements in some years but concerning declines in others, potentially signaling issues with the company's ability to meet its interest obligations in the long term.
Peer comparison
Dec 31, 2024