RPM International Inc (RPM)
Interest coverage
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 904,761 | 878,390 | 839,539 | 816,532 | 767,357 | 772,576 | 761,881 | 742,941 | 693,742 | 674,026 | 688,343 | 692,425 | 752,982 | 696,888 | 660,331 | 600,136 | 508,070 | 543,435 | 534,075 | 496,044 |
| Interest expense (ttm) | US$ in thousands | 117,969 | 124,323 | 126,552 | 124,122 | 119,015 | 109,186 | 100,446 | 93,530 | 87,928 | 85,552 | 84,500 | 84,764 | 85,400 | 86,348 | 89,356 | 94,431 | 101,003 | 106,964 | 109,517 | 106,303 |
| Interest coverage | 7.67 | 7.07 | 6.63 | 6.58 | 6.45 | 7.08 | 7.58 | 7.94 | 7.89 | 7.88 | 8.15 | 8.17 | 8.82 | 8.07 | 7.39 | 6.36 | 5.03 | 5.08 | 4.88 | 4.67 |
May 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $904,761K ÷ $117,969K
= 7.67
RPM International Inc has demonstrated a relatively stable interest coverage ratio over the past several years, indicating the company's ability to meet its interest payment obligations. The interest coverage ratio has generally been above 5, reflecting a healthy buffer to cover interest expenses with operating income.
There was a slight decline in the interest coverage ratio from May 31, 2024, to Feb 29, 2024, but it remained above 7 during that period. This decline was followed by a gradual increase in the ratio through Nov 30, 2022, suggesting an improvement in the company's ability to cover interest payments.
Overall, the trend indicates that RPM International Inc has maintained a strong interest coverage ratio, providing a good indication of the company's financial stability and ability to manage its debt obligations.
Peer comparison
May 31, 2024