SpartanNash Co (SPTN)
Interest coverage
| Dec 31, 2023 | Oct 7, 2023 | Jul 15, 2023 | Apr 22, 2023 | Dec 31, 2022 | Oct 8, 2022 | Apr 23, 2022 | Dec 31, 2021 | Oct 9, 2021 | Jul 17, 2021 | Apr 24, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jul 11, 2020 | Apr 18, 2020 | Dec 31, 2019 | Oct 5, 2019 | Jul 13, 2019 | Apr 20, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 110,012 | 95,224 | 91,435 | 83,329 | 91,345 | 104,548 | 110,411 | 112,507 | 96,777 | 103,068 | 111,172 | 103,782 | 97,795 | 74,139 | 39,045 | 37,948 | 14,470 | 36,009 | 67,056 | 70,963 |
| Interest expense (ttm) | US$ in thousands | 39,887 | 38,245 | 35,016 | 29,852 | 21,237 | 16,230 | 13,446 | 13,850 | 14,484 | 14,986 | 15,369 | 18,418 | 21,406 | 25,259 | 30,305 | 34,548 | 35,607 | 35,314 | 33,587 | 30,484 |
| Interest coverage | 2.76 | 2.49 | 2.61 | 2.79 | 4.30 | 6.44 | 8.21 | 8.12 | 6.68 | 6.88 | 7.23 | 5.63 | 4.57 | 2.94 | 1.29 | 1.10 | 0.41 | 1.02 | 2.00 | 2.33 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $110,012K ÷ $39,887K
= 2.76
The interest coverage ratio for SpartanNash Co has shown fluctuations over the past few years, indicating the company's ability to cover its interest expenses with its operating income.
The interest coverage ratio was relatively stable and healthy from 2018 to 2020, ranging from 2.00 to 6.44, suggesting the company had a comfortable margin to meet its interest obligations. However, there was a notable decline in interest coverage in 2021, with ratios falling below 3.00, signaling potential challenges in meeting interest payments with operating income.
In 2022, there was a significant improvement in the interest coverage ratio, reaching levels above 6.00 and peaking at 8.21, indicating a stronger ability to cover interest expenses. This trend continued into 2023, with interest coverage ratios remaining above 2.00, albeit showing some variability.
Overall, SpartanNash Co's interest coverage ratio has exhibited fluctuations in recent years, with periods of improvement and decline. It's essential for the company to closely monitor its interest coverage ratio to ensure it maintains a healthy financial position and can meet its debt obligations effectively.
Peer comparison
Dec 31, 2023