Post Holdings Inc (POST)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 692,300 | 680,100 | 706,900 | 798,600 | 1,293,400 | 1,160,100 | 1,069,600 | 836,400 | 426,800 | 578,600 | 558,600 | 648,400 | 281,900 | 313,400 | 212,700 | 184,500 | 446,900 | 443,200 | 551,900 | 653,500 |
| Interest expense (ttm) | US$ in thousands | 291,300 | 279,100 | 274,600 | 277,500 | 300,900 | 317,800 | 328,500 | 335,300 | 331,600 | 345,400 | 303,100 | 317,100 | 327,600 | 333,900 | 385,200 | 374,400 | 365,900 | 322,400 | 329,600 | 342,900 |
| Interest coverage | 2.38 | 2.44 | 2.57 | 2.88 | 4.30 | 3.65 | 3.26 | 2.49 | 1.29 | 1.68 | 1.84 | 2.04 | 0.86 | 0.94 | 0.55 | 0.49 | 1.22 | 1.37 | 1.67 | 1.91 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $692,300K ÷ $291,300K
= 2.38
Post Holdings Inc's interest coverage ratio has shown a fluctuating trend over the past few quarters. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt using its operating income.
In Q1 2024, the interest coverage ratio stood at 2.40, indicating that the company generated operating income 2.40 times higher than its interest expenses in that quarter. This represents an improvement compared to the previous quarter, Q4 2023, where the ratio was 2.30.
Looking further back, Q3 2023 had an interest coverage ratio of 1.91, indicating a lower ability to cover interest expenses compared to the more recent quarters. The trend shows a gradual increase in interest coverage from Q2 2023 (1.65) to Q1 2024 (2.40).
Although there have been fluctuations, it is positive to note that the interest coverage ratio has generally been above 1, suggesting that Post Holdings Inc has been able to comfortably meet its interest obligations. However, investors and creditors may prefer to see a more stable and increasing trend in the interest coverage ratio over time to ensure the company's long-term financial health and sustainability.
Peer comparison
Dec 31, 2023