Callaway Golf Company (MODG)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -1,253,800 | 179,300 | 224,600 | 244,900 | 245,000 | 239,000 | 235,200 | 252,700 | 284,700 | 263,174 | 266,874 | 230,874 | 466,074 | 486,043 | 477,840 | 209,707 | -80,634 | -68,657 | -96,539 | 113,669 |
| Interest expense (ttm) | US$ in thousands | 231,200 | 230,100 | 224,700 | 219,400 | 210,200 | 196,100 | 180,200 | 161,000 | 142,800 | 140,800 | 133,100 | 129,500 | 115,500 | 87,499 | 71,704 | 55,086 | 46,900 | 42,691 | 39,425 | 37,879 |
| Interest coverage | -5.42 | 0.78 | 1.00 | 1.12 | 1.17 | 1.22 | 1.31 | 1.57 | 1.99 | 1.87 | 2.01 | 1.78 | 4.04 | 5.55 | 6.66 | 3.81 | -1.72 | -1.61 | -2.45 | 3.00 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-1,253,800K ÷ $231,200K
= -5.42
Based on the data provided for Callaway Golf Company's interest coverage ratio over the past few quarters, we observe some fluctuations. The interest coverage ratio is a measure of a company's ability to meet its interest payments on outstanding debt, with higher values indicating better financial health.
From March 31, 2020, to June 30, 2020, the interest coverage ratio decreased significantly from 3.00 to -2.45, indicating a negative trend and potentially raising concerns about the company's ability to cover its interest expenses.
Subsequently, there was a general improvement in the interest coverage ratio over the following quarters, with values rising to positive levels. The ratios for March 31, 2021, June 30, 2021, and September 30, 2021, showed substantial increases, reaching 3.81, 6.66, and 5.55, respectively, reflecting a more favorable ability to cover interest payments.
However, the interest coverage ratio started declining again from December 31, 2021, to December 31, 2022, indicating a potential strain on the company's ability to cover interest expenses during this period.
Overall, the interest coverage ratio for Callaway Golf Company experienced fluctuations over the analyzed periods, with some improvements followed by declines. It is essential for investors and stakeholders to closely monitor this ratio to assess the company's financial stability and ability to meet its debt obligations.
Peer comparison
Dec 31, 2024