RPM International Inc (RPM)
Interest coverage
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 614,988 | 881,542 | 929,706 | 919,719 | 905,806 | 881,617 | 855,185 | 832,066 | 790,094 | 790,761 | 774,047 | 718,545 | 656,769 | 636,136 | 635,215 | 671,048 | 731,526 | 707,778 | 691,669 | 640,436 |
| Interest expense (ttm) | US$ in thousands | 96,543 | 97,880 | 103,414 | 110,585 | 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 | 86,347 | 89,355 | 94,430 |
| Interest coverage | 6.37 | 9.01 | 8.99 | 8.32 | 7.68 | 7.09 | 6.76 | 6.70 | 6.64 | 7.24 | 7.71 | 7.68 | 7.47 | 7.44 | 7.52 | 7.92 | 8.57 | 8.20 | 7.74 | 6.78 |
May 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $614,988K ÷ $96,543K
= 6.37
The analysis of RPM International Inc.'s interest coverage ratios over the specified periods reveals a generally stable and slightly upward trending pattern, indicative of a consistent ability to service interest obligations. Starting from a ratio of 6.78 on August 31, 2020, the metric experienced some fluctuations but remained within a relatively narrow range, demonstrating resilience in earnings relative to interest expenses.
During the subsequent quarters, the ratio increased to a peak of approximately 8.57 by May 31, 2021, indicating improved earnings capacity to cover interest costs. This upward trend persisted into late 2021 and early 2022, with ratios hovering around 7.52 to 7.71, reflecting stability in maintaining debt service coverage.
From mid-2022 onward, the interest coverage ratios showed minor variations, with values staying above 7.20 and declining slightly to about 6.64 by May 2023. The decline may suggest some pressures on earnings or increased interest expenses; however, the ratio remained comfortably above common distress thresholds (typically around 1.5 to 2), implying continued capacity to meet interest obligations.
Post-May 2023, the ratios began to recover, reaching approximately 8.32 on August 31, 2024, and further increasing to 8.99 by November 30, 2024. Early 2025 data indicates some volatility, with ratios dipping to about 6.37 in May but remaining relatively strong, suggesting that RPM effectively manages its interest coverage even amid fluctuations.
Overall, the interest coverage ratio reflects RPM’s robust ability to cover interest expenses across the observed periods, with variations attributable to earnings performance and interest expense dynamics. The ratios consistently remain well above critical warning levels, supporting an inference of financial stability and sound debt management practices during the identified timeframe.
Peer comparison
May 31, 2025