RBC Bearings Incorporated (RBC)
Interest coverage
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 372,100 | 364,257 | 350,657 | 353,757 | 340,757 | 329,884 | 323,437 | 311,337 | 290,540 | 257,238 | 207,550 | 150,624 | 116,834 | 103,985 | 111,411 | 118,489 | 117,348 | 125,096 | 135,754 | 146,716 |
| Interest expense (ttm) | US$ in thousands | 59,800 | 65,800 | 70,900 | 75,400 | 78,700 | 81,563 | 83,164 | 81,364 | 76,664 | 68,574 | 59,521 | 56,991 | 41,510 | 28,272 | 16,751 | 1,324 | 1,430 | 1,494 | 1,633 | 1,763 |
| Interest coverage | 6.22 | 5.54 | 4.95 | 4.69 | 4.33 | 4.04 | 3.89 | 3.83 | 3.79 | 3.75 | 3.49 | 2.64 | 2.81 | 3.68 | 6.65 | 89.49 | 82.06 | 83.73 | 83.13 | 83.22 |
March 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $372,100K ÷ $59,800K
= 6.22
The interest coverage ratio for RBC Bearings Incorporated has shown a generally strong trend over the years, indicating the company's ability to meet its interest obligations. The ratio has fluctuated within a range of 2.64 to 89.49 from June 30, 2022, to June 30, 2021, respectively.
However, there was a significant decline in the interest coverage ratio starting from September 30, 2021, reaching a low of 2.64 on June 30, 2022. This suggests that the company may have faced challenges in generating enough operating income to cover its interest expenses during that period.
Since then, the interest coverage ratio has improved gradually, reaching 6.22 as of March 31, 2025. This improvement indicates that the company has potentially strengthened its financial position and is better able to cover its interest payments.
Overall, while there was a period of concern regarding the company's ability to cover its interest expenses, the recent upward trend in the interest coverage ratio is a positive sign of potential financial stability and improvement in RBC Bearings Incorporated's ability to service its debt.
Peer comparison
Mar 31, 2025