Photronics Inc (PLAB)

Interest coverage

		Oct 31, 2024	Jul 28, 2024	Apr 28, 2024	Jan 28, 2024	Oct 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 31, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 31, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	221,517	230,474	243,590	254,583	223,727	219,483	217,948	200,304	208,808	181,786	146,519	117,925	94,554	76,020	67,494	59,391	63,928	70,419	63,883	60,378
Interest expense (ttm)	US$ in thousands	258	367	435	6,098	6,073	6,086	6,086	8,334	9,164	9,291	9,325	1,470	610	461	301	135	100	162	539	894
Interest coverage		858.59	627.99	559.98	41.75	36.84	36.06	35.81	24.03	22.79	19.57	15.71	80.22	155.01	164.90	224.23	439.93	639.28	434.69	118.52	67.54

October 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $221,517K ÷ $258K
= 858.59

Photronics Inc's interest coverage ratio has shown significant volatility over the past few periods, ranging from a high of 858.59 in October 2024 to a low of 15.71 in May 2022. This ratio measures the company's ability to meet its interest obligations based on its earnings before interest and taxes (EBIT).

In the most recent period, Oct 31, 2024, the interest coverage ratio was very high at 858.59, indicating a strong ability to cover interest payments. This may be attributed to a significant increase in EBIT relative to interest expenses during this period.

On the other hand, the lowest interest coverage ratio was observed in May 2022 at 15.71, raising concerns about the company's ability to meet its interest obligations from its operating profits alone during that period.

Overall, the trend in Photronics Inc's interest coverage ratio suggests fluctuating levels of financial risk and reliance on operating earnings to cover interest expenses. Analysts should continue to monitor this ratio to assess the company's ability to service its debt and manage financial obligations effectively.