Prestige Brand Holdings Inc (PBH)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	342,429	-20,721	-20,369	-24,235	-22,415	336,007	331,417	325,591	329,919	323,431	314,280	308,625	297,402	300,382	303,343	299,788	291,155	63,789	64,926	66,502
Interest expense (ttm)	US$ in thousands	5,200	69,272	69,293	69,314	69,334	64,476	64,492	64,510	64,526	82,583	82,602	82,598	104,547	44,674	69,152	93,602	96,650	99,916	101,728	104,322
Interest coverage		65.85	-0.30	-0.29	-0.35	-0.32	5.21	5.14	5.05	5.11	3.92	3.80	3.74	2.84	6.72	4.39	3.20	3.01	0.64	0.64	0.64

March 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $342,429K ÷ $5,200K
= 65.85

The interest coverage ratio of Prestige Brand Holdings Inc has displayed a fluctuating trend over the past several quarters. As of March 31, 2024, the interest coverage ratio stood at a healthy 65.85, indicating the company's ability to cover its interest expenses 65.85 times over with its earnings before interest and taxes. This suggests a strong financial position and a low risk of default on interest payments.

However, the company experienced negative interest coverage in the last three quarters of 2023 and the first quarter of 2023, with values ranging from -0.35 to -0.29. This indicates that the company's earnings were insufficient to cover its interest expenses during those periods.

Across the quarters prior to the negative values, from December 31, 2022, to September 30, 2021, the interest coverage ratio remained relatively stable, hovering between 3.74 and 5.21. While these values suggest that the company could adequately meet its interest obligations with its earnings, there may have been some fluctuations in profitability during this period.

Overall, it is important for investors and stakeholders to monitor the company's interest coverage ratio closely to assess its ability to meet its debt obligations in a sustainable manner.