Post Holdings Inc (POST)
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 | 788,300 | 680,100 | 1,160,100 | 557,500 | 313,400 |
| Interest expense | US$ in thousands | 316,500 | 279,100 | 317,800 | 332,600 | 333,900 |
| Interest coverage | 2.49 | 2.44 | 3.65 | 1.68 | 0.94 |
September 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $788,300K ÷ $316,500K
= 2.49
The interest coverage ratio for Post Holdings Inc has shown fluctuations over the past five years. In 2024, the interest coverage ratio improved to 2.49, indicating the company's ability to cover its interest expenses by 2.49 times. This increase from the previous year's ratio of 2.44 suggests a slightly stronger ability to meet interest obligations.
Looking further back, in 2022, the interest coverage ratio was highest at 3.65, reflecting a better ability to cover interest expenses compared to other years. However, in 2021 and 2020, the interest coverage ratios were relatively lower at 1.68 and 0.94, respectively, indicating a weaker ability to cover interest payments during those periods.
Overall, while the interest coverage ratios have varied over the years, the recent improvement in 2024 suggests a better ability for Post Holdings Inc to meet its interest obligations compared to the preceding years. It will be important for the company to continue monitoring and managing its interest coverage ratio to ensure financial stability and solvency.
Peer comparison
Sep 30, 2024