Pilgrims Pride Corp (PPC)
Interest coverage
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,572,659 | 1,472,829 | 1,161,239 | 795,468 | 566,751 | 254,517 | 404,037 | 824,593 | 1,177,537 | 1,342,807 | 1,102,754 | 463,967 | 237,914 | 200,472 | 165,883 | 315,062 | 287,630 | 392,360 | 494,164 | 750,042 |
| Interest expense (ttm) | US$ in thousands | 161,175 | 180,854 | 184,902 | 200,853 | 202,272 | 176,828 | 168,078 | 159,038 | 152,672 | 146,277 | 139,215 | 151,754 | 145,792 | 141,361 | 142,092 | 123,764 | 126,118 | 129,021 | 130,485 | 131,756 |
| Interest coverage | 9.76 | 8.14 | 6.28 | 3.96 | 2.80 | 1.44 | 2.40 | 5.18 | 7.71 | 9.18 | 7.92 | 3.06 | 1.63 | 1.42 | 1.17 | 2.55 | 2.28 | 3.04 | 3.79 | 5.69 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,572,659K ÷ $161,175K
= 9.76
The interest coverage ratio of Pilgrims Pride Corp provides insight into its ability to meet interest payments on its debt obligations. The trend analysis of the interest coverage ratio over the past few years shows fluctuations in the company's ability to cover its interest expenses.
From March 2020 to December 2021, the interest coverage ratio declined steadily from 5.69 to 1.63, indicating a potential weakening financial position as the company's ability to cover interest payments diminished. This could suggest increased financial risk and a higher likelihood of default.
However, starting from March 2022, there was an improvement in the interest coverage ratio, which increased to 9.18 by September 2022. This trend continued, with the ratio remaining above 5 until December 2024. The significant increase in the interest coverage ratio from 2022 onwards suggests an enhanced ability to cover interest expenses and indicates improved financial health and stability for Pilgrims Pride Corp.
Overall, the analysis of Pilgrims Pride Corp's interest coverage ratio shows fluctuations in the past but a positive trend towards improved coverage and financial stability in recent years. It is crucial to continue monitoring this ratio to ensure the company maintains a healthy ability to meet its interest obligations.
Peer comparison
Dec 31, 2024