Post Holdings Inc (POST)
Interest coverage
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 788,300 | 782,500 | 761,300 | 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 |
| Interest expense (ttm) | US$ in thousands | 316,500 | 313,600 | 307,500 | 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 |
| Interest coverage | 2.49 | 2.50 | 2.48 | 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 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $788,300K ÷ $316,500K
= 2.49
Post Holdings Inc's interest coverage has shown some fluctuation over the past few quarters, ranging from a low of 0.49 in the first quarter of 2020 to a high of 4.30 in the fourth quarter of 2022. A ratio above 1 indicates that the company is generating enough operating income to cover its interest expenses.
The interest coverage ratio has generally been above 2 in recent quarters, suggesting that the company has a comfortable buffer to meet its interest obligations. The peak at 4.30 in the fourth quarter of 2022 indicates a significant improvement in the company's ability to cover its interest costs.
However, there have been periods where the interest coverage ratio dipped below 1, such as in the first quarter of 2020 and the fourth quarter of 2021. These periods may indicate potential financial strain and a reduced ability to meet interest payments from operating income alone.
Overall, monitoring the interest coverage ratio over time is crucial for assessing the company's financial health and ability to service its debt obligations.
Peer comparison
Sep 30, 2024