Patterson Companies Inc (PDCO)
Interest coverage
| Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 286,600 | 288,375 | 302,434 | 304,756 | 285,179 |
| Interest expense | US$ in thousands | 44,910 | 44,910 | 33,636 | 33,636 | 20,288 |
| Interest coverage | 6.38 | 6.42 | 8.99 | 9.06 | 14.06 |
April 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $286,600K ÷ $44,910K
= 6.38
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. Looking at the data provided for Patterson Companies Inc, the interest coverage ratio has shown a downward trend over the years.
As of April 30, 2022, the interest coverage ratio was 14.06, indicating that the company had more than enough operating income to cover its interest expenses. However, by April 30, 2024, the interest coverage ratio had decreased to 6.38, signaling a lower ability to cover interest payments.
A declining interest coverage ratio could suggest increased financial risk for Patterson Companies Inc, as it may be becoming more strained in meeting its interest obligations from its operating income. It would be important for the company to closely monitor its financial leverage and operating performance to ensure sustainable financial health in the future.
Peer comparison
Apr 30, 2024