Post Holdings Inc (POST)
Interest coverage
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 680,100 | 1,160,100 | 557,500 | 313,400 | 443,200 |
| Interest expense | US$ in thousands | 279,100 | 317,800 | 332,600 | 333,900 | 322,400 |
| Interest coverage | 2.44 | 3.65 | 1.68 | 0.94 | 1.37 |
September 30, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $680,100K ÷ $279,100K
= 2.44
The interest coverage ratio for Post Holdings Inc has shown fluctuations over the past five years, ranging from 1.10 to 2.30. The ratio indicates the company's ability to meet its interest obligations from its operating income. A higher ratio is generally preferred as it signifies a greater capacity to cover interest expenses. Post Holdings Inc's interest coverage improved in 2023, reaching 2.30, which indicates a stronger ability to cover interest payments compared to previous years. This suggests an improvement in the company's financial health and a reduced risk of default on its debt obligations. However, it's important for investors and creditors to continue monitoring this ratio to assess the company's long-term solvency and financial stability.
Peer comparison
Sep 30, 2023