Leslies Inc (LESL)
Interest coverage
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 57,117 | 102,179 | 238,357 | 197,539 |
| Interest expense | US$ in thousands | 70,395 | 65,438 | 30,240 | 34,410 |
| Interest coverage | 0.81 | 1.56 | 7.88 | 5.74 |
September 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $57,117K ÷ $70,395K
= 0.81
The interest coverage ratio of Leslies Inc has been fluctuating over the past four years. In 2024, the interest coverage ratio decreased significantly to 0.81, indicating that the company's ability to cover its interest expenses with its earnings has weakened. This could signal potential financial distress or a strain on the company's profitability.
In 2023, the interest coverage ratio improved to 1.56 from the previous year, but it still remained relatively low, suggesting that Leslies Inc may have been facing challenges in meeting its interest obligations with its operating income.
In 2022, the interest coverage ratio was much healthier at 7.88, signaling a strong ability to cover interest expenses, which could indicate a period of improved financial performance and profitability for the company.
Similarly, in 2021, the interest coverage ratio was at a favorable level of 5.74, indicating that Leslies Inc had the ability to cover its interest payments almost six times over with its operating income.
Overall, the trend in Leslies Inc's interest coverage ratio shows variability in its ability to cover interest expenses over the past four years, with 2024 highlighting a significant decline that may require further investigation into the company's financial health and management of debt obligations.
Peer comparison
Sep 30, 2024