Sally Beauty Holdings Inc (SBH)
Interest coverage
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 458,473 | 445,507 | 427,604 |
| Interest expense (ttm) | US$ in thousands | 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 | 96,308 | 98,474 | 97,194 |
| Interest coverage | 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 | 4.76 | 4.52 | 4.40 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $307,564K ÷ $72,370K
= 4.25
The interest coverage ratio for Sally Beauty Holdings Inc has been relatively stable over the past eight quarters, ranging from 3.82 to 5.28. This indicates that the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT) has been consistent and solid.
The highest interest coverage ratio was observed in Q2 2022 at 5.28, suggesting the company had a strong ability to meet its interest obligations with its operating income during that period. Conversely, the lowest interest coverage ratio was in Q1 2023 at 3.82, although it remained above 1, indicating that the company was still generating enough operating income to cover its interest expenses.
Overall, the trend in Sally Beauty Holdings Inc's interest coverage ratio shows a stable and healthy financial position, as the company's earnings have consistently been sufficient to cover its interest payments, reducing the risk of default on its debt obligations.
Peer comparison
Dec 31, 2023