RBC Bearings Incorporated (RBC)
Interest coverage
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 371,700 | 340,500 | 286,400 | 120,260 | 111,489 |
| Interest expense | US$ in thousands | 59,800 | 78,700 | 76,695 | 41,510 | 1,430 |
| Interest coverage | 6.22 | 4.33 | 3.73 | 2.90 | 77.96 |
March 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $371,700K ÷ $59,800K
= 6.22
RBC Bearings Incorporated's interest coverage ratio has exhibited fluctuations over the years. As of March 31, 2021, the interest coverage ratio was robust at 77.96, indicating the company's ability to cover its interest expenses nearly 78 times over with its earnings before interest and taxes. However, there was a notable decline in the ratio to 2.90 as of March 31, 2022, implying a significant decrease in the company's ability to service its interest payments from its operating income.
Subsequently, the interest coverage ratio improved to 3.73 as of March 31, 2023, and continued to strengthen to 4.33 as of March 31, 2024, suggesting an enhanced capacity to meet interest obligations. This positive trend indicates that RBC Bearings Incorporated may have implemented strategies to bolster its earnings relative to its interest expenses.
As of March 31, 2025, the interest coverage ratio further increased to 6.22, demonstrating a continued improvement in the company's ability to cover interest payments comfortably. Overall, the fluctuations in RBC Bearings Incorporated's interest coverage ratio reflect varying levels of financial health and efficiency in managing its interest costs over the years, with recent trends pointing towards a more stable position.
Peer comparison
Mar 31, 2025