Leslies Inc (LESL)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 92,694 | 102,179 | 146,719 | 203,193 | 224,230 | 238,357 | 221,929 | 215,221 | 217,735 | 197,538 |
| Interest expense (ttm) | US$ in thousands | 69,149 | 65,438 | 57,863 | 47,035 | 36,737 | 30,240 | 28,028 | 28,580 | 29,757 | 34,410 |
| Interest coverage | 1.34 | 1.56 | 2.54 | 4.32 | 6.10 | 7.88 | 7.92 | 7.53 | 7.32 | 5.74 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $92,694K ÷ $69,149K
= 1.34
The interest coverage ratio for Leslies Inc has shown a declining trend over the past few quarters. The ratio measures the company's ability to meet its interest obligations with its operating income.
Based on the data provided, the interest coverage ratio has decreased from 7.32 in Dec 2021 to 1.34 in Dec 2023, indicating a significant decline in the company's ability to cover its interest expense.
This downward trend suggests that Leslies Inc may be facing challenges in generating enough operating income to meet its interest payments. A lower interest coverage ratio can signal a higher risk of default on its debt obligations.
Management should closely monitor the company's financial performance and consider strategies to improve profitability and cash flow to enhance its ability to cover interest expenses in the future.
Peer comparison
Dec 31, 2023