SpartanNash Co (SPTN)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Oct 7, 2023 | Sep 30, 2023 | Jul 15, 2023 | Jun 30, 2023 | Apr 22, 2023 | Mar 31, 2023 | Dec 31, 2022 | Oct 8, 2022 | Sep 30, 2022 | Jun 30, 2022 | Apr 23, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 9, 2021 | Sep 30, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 88,928 | 113,260 | 106,529 | 102,924 | 107,731 | 95,213 | 96,708 | 97,950 | 48,429 | 56,683 | 28,103 | -3,402 | 38,013 | 46,094 | 61,571 | 91,510 | 64,035 | 61,817 | 78,957 | 86,671 |
| Interest expense (ttm) | US$ in thousands | 44,827 | 43,612 | 42,977 | 41,716 | 37,578 | 37,258 | 39,567 | 41,876 | 40,554 | 37,256 | 31,718 | 24,657 | 20,815 | 18,949 | 15,872 | 14,364 | 13,199 | 12,281 | 12,574 | 14,143 |
| Interest coverage | 1.98 | 2.60 | 2.48 | 2.47 | 2.87 | 2.56 | 2.44 | 2.34 | 1.19 | 1.52 | 0.89 | -0.14 | 1.83 | 2.43 | 3.88 | 6.37 | 4.85 | 5.03 | 6.28 | 6.13 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $88,928K ÷ $44,827K
= 1.98
The interest coverage ratio of SpartanNash Co, which measures the company's ability to meet its interest payments with its operating income, has shown some fluctuations over the reporting periods.
Starting from September 30, 2021, the interest coverage ratio stood at 6.13, indicating that the company generated operating income 6.13 times higher than its interest expenses. This ratio increased slightly to 6.28 by October 9, 2021. However, by December 31, 2021, the interest coverage ratio decreased to 5.03 and continued to decline in the subsequent periods.
As of June 30, 2022, SpartanNash Co's interest coverage ratio dropped significantly to 3.88, signaling a potential decrease in the company's ability to cover its interest payments. The ratio further decreased to 2.43 by September 30, 2022, and 1.83 by October 8, 2022, indicating a tighter financial position.
By December 31, 2022, the interest coverage ratio turned negative at -0.14, suggesting that SpartanNash Co's operating income was insufficient to cover its interest expenses. This negative trend improved slightly in the following periods, reaching 2.48 by June 30, 2024.
Overall, the fluctuating trend in SpartanNash Co's interest coverage ratio indicates a potential strain on the company's ability to meet its interest obligations, and it is essential for investors and stakeholders to closely monitor this ratio in future periods to assess the company's financial health and risk levels.
Peer comparison
Dec 31, 2024