Patterson Companies Inc (PDCO)
Interest coverage
| Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | Apr 24, 2021 | Jan 23, 2021 | Oct 24, 2020 | Jul 25, 2020 | Apr 25, 2020 | Jan 25, 2020 | Oct 26, 2019 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 288,375 | 298,084 | 303,409 | 318,029 | 304,756 | 282,301 | 283,743 | 275,077 | 288,038 | 242,130 | 227,784 | 234,891 | 225,087 | -441,776 | -461,594 | -556,414 | -547,699 | 124,032 | 124,615 | 189,652 |
| Interest expense (ttm) | US$ in thousands | 44,910 | 42,677 | 40,683 | 37,585 | 33,636 | 27,531 | 22,679 | 20,656 | 20,288 | 21,275 | 21,928 | 22,788 | 24,284 | 26,071 | 37,123 | 39,788 | 41,787 | 44,137 | 36,725 | 37,135 |
| Interest coverage | 6.42 | 6.98 | 7.46 | 8.46 | 9.06 | 10.25 | 12.51 | 13.32 | 14.20 | 11.38 | 10.39 | 10.31 | 9.27 | -16.95 | -12.43 | -13.98 | -13.11 | 2.81 | 3.39 | 5.11 |
April 27, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $288,375K ÷ $44,910K
= 6.42
The interest coverage ratio for Patterson Companies Inc has exhibited fluctuations over the periods in question. Generally, the company has maintained a healthy interest coverage, with the ratio consistently above 1, indicating the firm's ability to cover its interest obligations with operating income.
Looking at the trend, we observe an overall increasing pattern from 2019 to 2022, reaching a peak in Jul 30, 2022, at 13.32. This upward trend suggests improved ability to service debt through operating profits. However, there was a significant decline in interest coverage in the subsequent period, as seen in Apr 24, 2021, and Jan 23, 2021, where the ratios turned negative. This may indicate financial stress and potential difficulties in meeting interest payments from operating income during those periods.
Despite the downturn in specific periods, the interest coverage ratio has largely recovered and improved in recent periods, with positive values indicating a healthier financial position. It is important for investors and stakeholders to closely monitor these ratios to assess Patterson Companies Inc's ability to meet its interest obligations and manage its debt levels effectively.
Peer comparison
Apr 27, 2024