Sally Beauty Holdings Inc (SBH)
Interest coverage
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 282,733 | 277,375 | 295,730 | 307,564 | 325,029 | 287,317 | 296,395 | 311,448 | 337,640 | 409,637 | 437,851 | 426,901 | 418,443 | 426,927 | 300,941 | 268,695 | 258,760 | 255,175 | 373,875 | 443,122 |
| Interest expense (ttm) | US$ in thousands | 76,408 | 78,261 | 76,208 | 72,370 | 72,979 | 70,692 | 88,015 | 91,226 | 93,544 | 96,310 | 83,785 | 87,772 | 93,509 | 101,623 | 105,469 | 103,230 | 98,793 | 92,700 | 91,183 | 93,360 |
| Interest coverage | 3.70 | 3.54 | 3.88 | 4.25 | 4.45 | 4.06 | 3.37 | 3.41 | 3.61 | 4.25 | 5.23 | 4.86 | 4.47 | 4.20 | 2.85 | 2.60 | 2.62 | 2.75 | 4.10 | 4.75 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $282,733K ÷ $76,408K
= 3.70
Interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. Sally Beauty Holdings Inc's interest coverage ratio has varied over the past few quarters, ranging from a low of 2.60 to a high of 5.23.
The interest coverage ratio has generally been above 3, indicating that the company generates enough earnings to cover its interest expenses comfortably. There was a slight decrease in interest coverage in the most recent quarter, which could signal a potential increase in financial risk if not addressed.
Overall, Sally Beauty Holdings Inc has maintained a satisfactory interest coverage ratio, but stakeholders should monitor any fluctuations closely to ensure the company's ability to meet its debt obligations remains stable.
Peer comparison
Sep 30, 2024