Plexus Corp (PLXS)

Interest coverage

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	158,408	192,555	174,161	174,664	151,559
Interest expense	US$ in thousands	28,876	31,542	15,858	14,253	16,162
Interest coverage		5.49	6.10	10.98	12.25	9.38

September 30, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $158,408K ÷ $28,876K
= 5.49

The interest coverage ratio for Plexus Corp has shown a declining trend over the past five years, decreasing from 12.25 in Sep 30, 2021, to 5.49 in Sep 30, 2024. This indicates that the company's ability to cover its interest obligations with its operating income has weakened.

Although the ratio has fluctuated over the years, it generally remained at a healthy level above 5, indicating that the company's earnings were sufficient to cover its interest expenses. However, the recent decline in the interest coverage ratio may raise concerns about the company's ability to service its debt obligations in the future.

It is important for investors and stakeholders to monitor Plexus Corp's financial performance and debt management strategies closely to ensure the company remains financially stable and capable of meeting its interest payment obligations.