REX American Resources Corporation (REX)

Interest coverage

Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 63,594 60,711 32,480 30,182 32,494 56,372 71,764 68,820 69,925 37,991 32,571 22,310 561 311 -19,002 -13,993 -1,144 -5,519 2,707 6,756
Interest expense (ttm) US$ in thousands 7,849 9,998 11,981 20,162 12,634 10,498 8,515 334 13 0 0 0 0 0 0 0 0 0 0 0
Interest coverage 8.10 6.07 2.71 1.50 2.57 5.37 8.43 206.05 5,378.85 — — — — — — — — — — —

January 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $63,594K ÷ $7,849K
= 8.10

The interest coverage ratio of REX American Resources Corporation has displayed significant fluctuations over the reported periods. In January 2024, the interest coverage ratio stood at 8.10, indicating that the company is able to cover its interest expenses 8.10 times over with its operating income. This signifies a healthy ability to meet interest obligations. Comparatively, in October 2023, the interest coverage ratio decreased to 6.07, suggesting a slight decline in the company's ability to cover interest expenses.

In July 2022, the interest coverage ratio spiked to 8.43, reflecting an exceptional ability to cover interest payments. However, this ratio significantly escalated to 206.05 in April 2022 and dramatically rose to 5,378.85 in January 2022. Such unusually high ratios could be attributed to anomalies or one-time events impacting the financial results significantly.

It is notable that in some periods, like July 2023 and April 2023, the interest coverage ratio fell to 2.71 and 1.50, respectively, indicating a potential strain on the company's ability to cover its interest expenses with its operating income. These lower ratios may raise concerns regarding the company's financial health and ability to meet debt obligations.

Overall, while the interest coverage ratio has exhibited variability, investors should closely monitor the fluctuations and assess the company's ability to generate sufficient operating income to cover interest expenses in the long term.