REX American Resources Corporation (REX)

Interest coverage

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	63,594	20,197	63,524	-24,706	-6,773
Interest expense	US$ in thousands	—	-11,464	130	299	1,387
Interest coverage		—	—	488.65	-82.63	-4.88

January 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $63,594K ÷ $—K
= —

Based on the data provided, the interest coverage ratio for REX American Resources Corporation has shown significant fluctuations over the past five years. In January 2020, the interest coverage was negative at -4.88, indicating that the company's operating income was insufficient to cover its interest expenses, raising concerns about its financial health.

However, in the following years, there was a substantial improvement in the interest coverage ratio. By January 2021, the ratio increased to -82.63 and further improved to 488.65 in January 2022. This indicates that the company's ability to cover its interest payments improved significantly, reflecting a healthier financial position.

Unfortunately, there is missing data for January 2023 and January 2024, which makes it challenging to provide a complete trend analysis. It is important to note that a higher interest coverage ratio is generally preferred as it signifies that the company is more capable of meeting its interest obligations. Further analysis and comparison with industry benchmarks would be necessary to gain deeper insights into REX American Resources Corporation's financial performance.