Simply Good Foods Co (SMPL)
Interest coverage
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 206,497 | 205,760 | 172,450 | 112,417 | 111,777 |
| Interest expense | US$ in thousands | 26,029 | 30,068 | 21,881 | 31,557 | 32,813 |
| Interest coverage | 7.93 | 6.84 | 7.88 | 3.56 | 3.41 |
August 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $206,497K ÷ $26,029K
= 7.93
The interest coverage ratio of Simply Good Foods Co has shown a generally positive trend over the past five years. The ratio has consistently remained above 1, indicating that the company's operating income was sufficient to cover its interest expenses.
In particular, the interest coverage ratio improved from 3.41 in 2020 to 7.93 in 2024, reflecting a significant strengthening of the company's ability to meet its interest obligations. This upward trajectory suggests that Simply Good Foods Co has managed its financial resources effectively, generating increased earnings relative to its interest expenses.
Overall, the improving trend in the interest coverage ratio of Simply Good Foods Co indicates a growing capacity to handle its debt obligations and suggests a healthy financial position for the company.
Peer comparison
Aug 31, 2024