SpartanNash Co (SPTN)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 83,170 | -23,326 | 23,391 | 38,725 |
| Interest expense | US$ in thousands | 44,827 | 30,218 | 22,791 | 13,851 | 18,418 |
| Interest coverage | 0.00 | 2.75 | -1.02 | 1.69 | 2.10 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $44,827K
= 0.00
Based on the provided data for SpartanNash Co's interest coverage ratio over the years, we observe fluctuations in the company's ability to cover its interest expenses:
1. In December 31, 2020, the interest coverage ratio was 2.10, indicating that SpartanNash Co generated 2.10 times the earnings before interest and taxes (EBIT) to cover its interest expenses. This suggests a moderate level of interest coverage.
2. By December 31, 2021, the interest coverage ratio decreased to 1.69, implying a slight decline in SpartanNash Co's ability to cover its interest obligations. This may raise concerns about the company's ability to service its debt efficiently.
3. Subsequently, in December 31, 2022, the interest coverage ratio turned negative at -1.02, indicating that SpartanNash Co's EBIT was insufficient to cover its interest expenses. A negative interest coverage ratio raises significant red flags about the company's financial health and ability to meet its interest payments.
4. However, by December 31, 2023, the interest coverage ratio improved to 2.75, suggesting a positive turnaround in SpartanNash Co's ability to cover its interest costs. This increase is a positive sign indicating a better financial position.
5. Lastly, in December 31, 2024, the interest coverage ratio was noted as 0.00, which could be a result of possibly zero or negative earnings before interest and taxes, making the company incapable of servicing its interest payments during that period.
Overall, the fluctuations in SpartanNash Co's interest coverage ratio highlight the importance of monitoring the company's financial performance and debt management practices to ensure sustainable operations and financial stability.
Peer comparison
Dec 31, 2024