REX American Resources Corporation (REX)

Interest coverage

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	33,074	43,221	73,807	70,208	66,265	52,897	25,761	23,463	25,775	50,340	65,733	64,178	67,043	36,267	32,084	20,434	-3,075	-4,080	-24,631	-19,622
Interest expense (ttm)	US$ in thousands	0	7,849	7,849	7,849	15,698	9,998	11,981	20,162	12,634	10,498	8,515	334	13	0	0	0	0	0	0	0
Interest coverage		—	5.51	9.40	8.94	4.22	5.29	2.15	1.16	2.04	4.80	7.72	192.15	5,157.15	—	—	—	—	—	—	—

January 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $33,074K ÷ $0K
= —

The interest coverage ratio for REX American Resources Corporation indicates its ability to cover interest expenses with its earnings before interest and taxes (EBIT). From the provided data, the trend in the interest coverage ratio over the quarters is as follows:

- The interest coverage ratio was not available for the periods up to January 31, 2022.
- In April 30, 2022, the interest coverage ratio was 192.15, showing a significant improvement in covering interest expenses.
- By July 31, 2022, the interest coverage ratio dropped sharply to 7.72, indicating a potential decrease in ability to cover interest costs.
- The trend continued to decline in the following quarters with ratios of 4.80 on October 31, 2022, 2.04 on January 31, 2023, and 1.16 on April 30, 2023.
- There was a slight increase in the interest coverage ratio to 2.15 on July 31, 2023, and further improvement to 5.29 on October 31, 2023.
- Subsequently, the ratio decreased to 4.22 on January 31, 2024 but rose again to 8.94 on April 30, 2024, indicating a strong improvement.
- By July 31, 2024, the ratio was maintained at 9.40, showing continued strength in covering interest expenses.
- The interest coverage ratio declined to 5.51 on October 31, 2024, followed by no available data for January 31, 2025.

Overall, the interest coverage ratio fluctuated over the quarters, with periods of strong improvement and others indicating a potential challenge in covering interest expenses. It is essential for stakeholders to monitor this ratio to assess the company's ability to meet its financial obligations related to interest payments.