ScanSource Inc (SCSC)
Interest coverage
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 109,960 | 118,832 | 134,507 | 132,354 | 143,353 | 140,710 | 139,135 | 129,885 | 125,245 | 124,889 | 110,631 | 70,914 | 29,870 | -216,729 | -228,916 | -202,116 | -172,978 | 64,330 | 76,187 | 86,871 |
| Interest expense (ttm) | US$ in thousands | 384 | 16,508 | 20,222 | 21,923 | 19,786 | 16,109 | 11,877 | 8,310 | 6,522 | 6,280 | 6,373 | 6,676 | 6,929 | 7,782 | 9,304 | 10,820 | 12,224 | 13,474 | 14,046 | 13,853 |
| Interest coverage | 286.35 | 7.20 | 6.65 | 6.04 | 7.25 | 8.73 | 11.71 | 15.63 | 19.20 | 19.89 | 17.36 | 10.62 | 4.31 | -27.85 | -24.60 | -18.68 | -14.15 | 4.77 | 5.42 | 6.27 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $109,960K ÷ $384K
= 286.35
Interest coverage is an important financial ratio that provides insights into a company's ability to meet its interest payments on outstanding debt. ScanSource Inc's interest coverage ratio has shown fluctuations over the past few quarters.
As of June 30, 2024, the interest coverage ratio stands at a significant 286.35, indicating that the company has more than enough operating income to cover its interest expenses. This high ratio suggests a strong financial position and low risk of default on debt obligations.
However, the interest coverage ratio dropped to 7.20 in the previous quarter (March 31, 2024), indicating a decrease in the company's ability to cover its interest expenses with its operating income. This could raise concerns about the company's financial health and ability to meet its debt obligations.
Overall, ScanSource Inc's interest coverage ratio has exhibited variability, with some periods of strong coverage and others showing a decrease in coverage levels. Investors and stakeholders should monitor this ratio closely to assess the company's financial stability and ability to manage its debt effectively.
Peer comparison
Jun 30, 2024