Pool Corporation (POOL)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 746,567 | 1,025,780 | 832,784 | 464,027 | 341,246 |
| Interest expense | US$ in thousands | 59,244 | 40,911 | 8,639 | 12,353 | 23,772 |
| Interest coverage | 12.60 | 25.07 | 96.40 | 37.56 | 14.35 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $746,567K ÷ $59,244K
= 12.60
The interest coverage ratio for Pool Corporation is not available in the given table for the years ending December 31, 2019 to 2023.
Interest coverage ratio is a measure of a company's ability to pay interest on its outstanding debt and is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. A high interest coverage ratio indicates that the company is generating enough operating income to cover its interest payments, implying lower default risk. Conversely, a low interest coverage ratio may suggest that the company is struggling to meet its interest obligations and could potentially be at risk of default.
Without the specific values of interest coverage, it is challenging to assess Pool Corporation's ability to meet its interest payments and the associated level of financial risk. Consequently, further data or analysis would be required to evaluate the company's financial health in this regard.