Monro Muffler Brake Inc (MNRO)
Interest coverage
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 71,885 | 79,750 | 20,747 | -4,878 |
| Interest expense | US$ in thousands | — | 20,005 | 23,176 | 24,631 | 28,235 |
| Interest coverage | — | 3.59 | 3.44 | 0.84 | -0.17 |
March 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $—K
= —
The interest coverage ratio of Monro Muffler Brake Inc has shown a significant improvement over the years. In March 2021, the company had an extremely low interest coverage ratio of -0.17, indicating that its earnings were insufficient to cover its interest expenses. However, by March 2025, the interest coverage ratio had improved, although the exact value is missing in the data provided.
The increase in the interest coverage ratio from 2021 to 2025 reflects a positive trend, suggesting that the company's ability to cover its interest obligations with operating income has strengthened. This improvement is generally viewed favorably by investors and creditors as it indicates a reduced risk of default on debt obligations. However, it is important to note that the company's interest coverage ratio in 2022 and 2023 was still relatively low at 0.84 and 3.44, respectively, indicating that there may have been some periods of financial strain during those years.
Overall, the steady improvement in Monro Muffler Brake Inc's interest coverage ratio from 2021 to 2025 demonstrates progress in managing its debt obligations and enhancing its financial health. Continued monitoring of this ratio will be important to ensure the company maintains a strong position to meet its interest payments in the future.
Peer comparison
Mar 31, 2025