Powell Industries Inc (POWL)
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 | 178,773 | 62,520 | 7,224 | 1,296 | 20,558 |
| Interest expense | US$ in thousands | — | — | 334 | 204 | 228 |
| Interest coverage | — | — | 21.63 | 6.35 | 90.17 |
September 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $178,773K ÷ $—K
= —
Interest coverage is a financial metric that indicates a company's ability to pay interest expenses on its outstanding debt. Powell Industries Inc's interest coverage ratio has shown significant fluctuations over the past five years.
In 2020, the interest coverage ratio was notably high at 90.17, indicating that the company had a strong ability to cover its interest expenses with its operating income. However, in 2021, the interest coverage ratio dropped to 6.35, suggesting a significant decrease in the company's ability to cover its interest costs.
The interest coverage ratio improved in 2022 to 21.63, indicating a recovery in Powell Industries Inc's ability to meet its interest obligations. However, it is important to note that the interest coverage ratio for 2023 and 2024 is not available in the provided data.
The fluctuation in Powell Industries Inc's interest coverage ratio over the years could be attributed to changes in the company's operating income, interest expenses, or a combination of both. It is crucial for stakeholders to monitor the interest coverage ratio closely to assess the company's financial health and its ability to manage its debt obligations effectively.
Peer comparison
Sep 30, 2024