RPM International Inc (RPM)

The interest coverage ratio for RPM International Inc. demonstrates a fluctuating trend over the period from May 31, 2021, to May 31, 2025. As of May 31, 2021, the ratio was 8.83, indicating that the company's earnings before interest and taxes (EBIT) were approximately 8.83 times the interest expenses, reflecting a strong capacity to meet interest obligations. By May 31, 2022, the ratio declined slightly to 7.90, which suggests a modest decrease in the company's ability to cover interest costs. The downward trend continued into May 31, 2023, with the ratio decreasing further to 6.46, signaling a relatively weakened capacity to service interest expenses, potentially due to decreased earnings or increased interest expenses during that period.

Subsequently, the ratio shows signs of recovery; by May 31, 2024, it increased to 7.68, indicating an improvement in the company's interest coverage capacity. This positive movement continued into May 31, 2025, with the ratio reaching 9.21, thereby surpassing historical levels observed in previous years. This upward trend suggests that RPM International Inc. is expected to regain and strengthen its ability to comfortably cover interest expenses, which could be attributed to improved earnings, reduced interest expenses, or both.

Overall, while there was a dip in the interest coverage ratio from 2021 through 2023, the subsequent recovery signifies a potential strengthening of RPM's financial stability concerning its interest obligations. These fluctuations underscore the importance of monitoring the company's earnings relative to its interest expenses, as they are indicative of its capacity to meet debt obligations and maintain financial health over time.

Peer comparison

May 31, 2025