Monro Muffler Brake Inc (MNRO)
Interest coverage
| Mar 31, 2024 | Dec 23, 2023 | Sep 23, 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 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 71,425 | 67,264 | 69,727 | 70,845 | 79,751 | 85,042 | 88,632 | 99,637 | 101,299 | 110,554 | 98,806 | 88,753 | 72,237 | 51,917 | 67,800 | 76,732 | 101,702 | 129,753 | 128,892 | 130,043 |
| Interest expense (ttm) | US$ in thousands | 20,005 | 20,916 | 21,822 | 22,726 | 23,176 | 23,050 | 22,777 | 23,348 | 24,631 | 25,601 | 26,744 | 27,790 | 28,234 | 26,911 | 25,446 | 23,437 | 21,330 | 22,778 | 24,221 | 25,711 |
| Interest coverage | 3.57 | 3.22 | 3.20 | 3.12 | 3.44 | 3.69 | 3.89 | 4.27 | 4.11 | 4.32 | 3.69 | 3.19 | 2.56 | 1.93 | 2.66 | 3.27 | 4.77 | 5.70 | 5.32 | 5.06 |
March 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $71,425K ÷ $20,005K
= 3.57
The interest coverage ratio for Monro Muffler Brake Inc has shown some fluctuations over the past 20 quarters. The ratio measures the company's ability to meet its interest payments on debt obligations using its operating income. A higher interest coverage ratio indicates a better ability to cover interest expenses.
On average, Monro Muffler Brake Inc had an interest coverage ratio of approximately 3.70 over the period, with a range from as low as 1.93 to as high as 5.70. The lowest interest coverage ratio of 1.93 was observed in December 2020, indicating that the company's operating income was just enough to cover its interest expenses at that time.
The trend shows some volatility, with the ratio fluctuating between 3 and 4 in recent quarters. This suggests that the company has been able to consistently cover its interest expenses with its operating income, but there may be some variability in the level of coverage.
Overall, while the company's interest coverage ratios have varied over time, the average ratio of around 3.70 indicates a reasonable ability to meet its interest obligations. It is important for investors and creditors to monitor this ratio to ensure the company's financial health and ability to service its debt in the long term.
Peer comparison
Mar 31, 2024