Prestige Brand Holdings Inc (PBH)

Interest coverage

		Mar 31, 2025	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	332,317	329,752	324,293	331,914	343,074	-19,625	-23,325	-34,689	-35,143	313,445	309,923	302,214	307,384	293,938	288,453	288,864	281,061	296,330	299,291	295,736
Interest expense (ttm)	US$ in thousands	47,632	52,133	57,253	62,578	67,160	70,876	72,218	71,591	69,164	66,161	65,168	64,502	64,287	67,297	70,511	75,464	82,352	85,843	90,225	93,468
Interest coverage		6.98	6.33	5.66	5.30	5.11	-0.28	-0.32	-0.48	-0.51	4.74	4.76	4.69	4.78	4.37	4.09	3.83	3.41	3.45	3.32	3.16

March 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $332,317K ÷ $47,632K
= 6.98

Based on the provided data, Prestige Brand Holdings Inc's interest coverage ratio has shown a generally positive trend over the years. The interest coverage ratio reflects the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT).

From June 30, 2020, to June 30, 2022, the interest coverage ratio has been steadily increasing, indicating an improvement in the company's ability to cover its interest expenses. The ratio ranged from 3.16 to 4.76 during this period.

However, there was a significant decline in the interest coverage ratio in the subsequent quarters, with negative ratios reported from March 31, 2023, to December 31, 2023. A negative interest coverage ratio suggests that the company's EBIT is insufficient to cover its interest expenses during those periods.

The company's financial performance improved again from March 31, 2024, to March 31, 2025, with the interest coverage ratio increasing to 6.98. This indicates that Prestige Brand Holdings Inc has a strong ability to cover its interest expenses with its operating earnings, which is a positive sign for the company's financial health.