Performance Food Group Co (PFGC)
Interest coverage
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 829,000 | 762,000 | 350,000 | 207,100 | -105,300 |
| Interest expense | US$ in thousands | 232,200 | 218,000 | 182,900 | 152,400 | 116,900 |
| Interest coverage | 3.57 | 3.50 | 1.91 | 1.36 | -0.90 |
June 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $829,000K ÷ $232,200K
= 3.57
Performance Food Group Co's interest coverage ratio has shown improvement over the past few years. As of June 30, 2020, the company's interest coverage ratio was negative, indicating that the company's earnings were not sufficient to cover its interest expenses. However, by June 30, 2021, the interest coverage ratio had improved to 1.36, suggesting that the company's earnings were just enough to cover its interest expenses.
In the following years, the interest coverage ratio continued to increase, reaching 1.91 by June 30, 2022, 3.50 by June 30, 2023, and 3.57 by June 30, 2024. These ratios indicate a positive trend, with the company's earnings becoming increasingly more capable of covering its interest expenses.
Overall, the improving trend in Performance Food Group Co's interest coverage ratio signifies enhancing financial health and a reduced risk of defaulting on its interest payments. This positive trend suggests that the company may have better financial stability and an improved ability to meet its debt obligations.
Peer comparison
Jun 30, 2024