Vail Resorts Inc (MTN)
Interest coverage
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 491,060 | 533,300 | 490,606 | 469,317 | 509,584 | 560,711 | 598,170 | 584,895 | 584,930 | 511,446 | 376,112 | 276,172 | 279,975 | 287,586 | 100,492 | 187,443 | 212,932 | 258,248 | 459,838 | 451,345 |
| Interest expense (ttm) | US$ in thousands | 161,839 | 161,379 | 160,665 | 158,450 | 153,022 | 148,951 | 144,944 | 143,940 | 148,183 | 151,155 | 155,056 | 155,537 | 151,399 | 145,705 | 131,151 | 119,438 | 106,721 | 93,584 | 88,680 | 83,548 |
| Interest coverage | 3.03 | 3.30 | 3.05 | 2.96 | 3.33 | 3.76 | 4.13 | 4.06 | 3.95 | 3.38 | 2.43 | 1.78 | 1.85 | 1.97 | 0.77 | 1.57 | 2.00 | 2.76 | 5.19 | 5.40 |
July 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $491,060K ÷ $161,839K
= 3.03
The interest coverage ratio for Vail Resorts Inc has shown fluctuations over the past two years, with values ranging from a low of 0.77 to a high of 5.40. Generally, an interest coverage ratio above 1 indicates that the company is generating enough earnings to cover its interest expenses. Vail Resorts Inc's interest coverage ratio has remained above 1 in all periods, suggesting that the company has been able to comfortably meet its interest obligations.
In the most recent period, the interest coverage ratio was 3.03, indicating that the company's operating income was able to cover its interest expenses approximately three times over. This demonstrates a healthy ability to meet debt obligations and suggests a lower risk of default.
However, it is worth noting that there have been periods where the interest coverage ratio fell below 2, indicating a lower level of earnings relative to interest expenses. Investors and creditors may want to monitor the trend in the interest coverage ratio over time to ensure the company's ability to service its debt remains stable and resilient.
Peer comparison
Jul 31, 2024