Smart Global Holdings Inc (SGH)
Interest coverage
| Mar 1, 2024 | Dec 1, 2023 | Aug 25, 2023 | May 26, 2023 | Feb 24, 2023 | Nov 25, 2022 | Aug 26, 2022 | May 27, 2022 | Feb 25, 2022 | Nov 26, 2021 | Aug 27, 2021 | May 28, 2021 | Feb 26, 2021 | Nov 27, 2020 | May 29, 2020 | Feb 28, 2020 | Nov 29, 2019 | Aug 30, 2019 | May 31, 2019 | Mar 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -6,032 | -4,797 | 8,745 | 33,444 | 62,034 | 65,664 | 67,176 | 4,953 | -18,357 | -6,970 | -15,705 | 33,522 | 38,784 | 31,725 | 35,533 | 32,868 | 47,163 | 89,081 | 122,630 | 163,925 |
| Interest expense (ttm) | US$ in thousands | 34,050 | 34,807 | 33,285 | 30,593 | 27,644 | 24,100 | 21,169 | 19,709 | 19,648 | 19,551 | 17,599 | 15,662 | 14,763 | 14,890 | 16,303 | 18,210 | 19,333 | 20,716 | 22,366 | 21,463 |
| Interest coverage | -0.18 | -0.14 | 0.26 | 1.09 | 2.24 | 2.72 | 3.17 | 0.25 | -0.93 | -0.36 | -0.89 | 2.14 | 2.63 | 2.13 | 2.18 | 1.80 | 2.44 | 4.30 | 5.48 | 7.64 |
March 1, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-6,032K ÷ $34,050K
= -0.18
The interest coverage ratio for Smart Global Holdings Inc fluctuated significantly over the past years, indicating varying degrees of ability to meet interest payments from operating income. The company struggled with negative interest coverage in some periods, particularly in March 2024 (-0.18) and December 2023 (-0.14), suggesting a potential difficulty in generating enough earnings to cover interest expenses.
However, there were also periods of improvement in interest coverage, such as in August 2023 (0.26) and May 2023 (1.09), where the company's operating income was better able to cover interest obligations. The ratio peaked at 7.64 in March 2019, indicating a strong ability to meet interest payments with operating income during that period.
Overall, the trend in interest coverage suggests that Smart Global Holdings Inc has experienced fluctuations in its ability to service its debt obligations over the analyzed period, with indications of both strength and weakness in different financial reporting periods. Further analysis of the company's financial performance and debt management practices may provide more insights into its long-term financial health.
Peer comparison
Mar 1, 2024