Monro Muffler Brake Inc (MNRO)
Interest coverage
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 71,425 | 79,750 | 101,298 | 72,238 | 101,702 |
| Interest expense | US$ in thousands | 13,513 | 16,099 | 18,346 | 18,344 | 21,330 |
| Interest coverage | 5.29 | 4.95 | 5.52 | 3.94 | 4.77 |
March 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $71,425K ÷ $13,513K
= 5.29
Monro Muffler Brake Inc's interest coverage ratio has shown a generally positive trend over the past five years, indicating the company's ability to meet its interest payments from its operating income. The ratio has consistently been above 1, suggesting that the company earns more than enough operating income to cover its interest expenses. In particular, there was a notable increase in the interest coverage ratio in fiscal year 2022, which reached 5.52, signaling a stronger ability to cover interest costs. This improvement may be attributed to higher operating income or lower interest expenses during that year. Overall, the consistent and relatively stable interest coverage ratios reflect Monro Muffler Brake Inc's strong financial health and ability to manage its debt obligations effectively.
Peer comparison
Mar 31, 2024