Performance Food Group Co (PFGC)
Interest coverage
| Sep 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 760,100 | 808,500 | 822,300 | 801,100 | 762,000 | 663,900 | 576,100 | 480,800 | 350,000 | 268,300 | 213,400 | 219,800 | 207,100 | -99,400 | -149,700 | -132,000 | -105,300 | 219,300 | 304,800 | 296,400 |
| Interest expense (ttm) | US$ in thousands | 241,400 | 230,600 | 229,400 | 223,700 | 218,000 | 209,800 | 199,800 | 189,300 | 182,900 | 173,500 | 164,700 | 157,600 | 152,400 | 152,000 | 150,100 | 138,400 | 116,900 | 96,200 | 77,500 | 67,100 |
| Interest coverage | 3.15 | 3.51 | 3.58 | 3.58 | 3.50 | 3.16 | 2.88 | 2.54 | 1.91 | 1.55 | 1.30 | 1.39 | 1.36 | -0.65 | -1.00 | -0.95 | -0.90 | 2.28 | 3.93 | 4.42 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $760,100K ÷ $241,400K
= 3.15
The interest coverage ratio for Performance Food Group Co has varied over the past few quarters, indicating the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
The trend shows that the interest coverage ratio has generally improved from negative figures in March and December 2021 to positive values in September 2024. This improvement suggests that the company's earnings are now more than sufficient to cover its interest expenses, demonstrating enhanced financial health and reduced financial risk related to debt obligations.
However, it is worth noting that the interest coverage ratio fluctuated throughout the periods, which may suggest some variability in the company's profitability and ability to meet its interest payments consistently. Monitoring this ratio over time will be crucial to assess the company's ongoing financial stability and debt management practices.
Peer comparison
Sep 30, 2024