Standex International Corporation (SXI)
Interest coverage
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 99,150 | 169,193 | 87,067 | 56,665 | 40,723 |
| Interest expense | US$ in thousands | 4,544 | 5,405 | 5,874 | 5,992 | 7,475 |
| Interest coverage | 21.82 | 31.30 | 14.82 | 9.46 | 5.45 |
June 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $99,150K ÷ $4,544K
= 21.82
Standex International Corporation's interest coverage ratio has shown a notable positive trend over the last five years, indicating the company's increasing ability to cover its interest expenses with its earnings before interest and taxes (EBIT). The interest coverage ratio has improved significantly from 5.45 in 2020 to 21.82 in 2024, reflecting a strong financial position and improved profitability over this period.
The company's interest coverage ratio surpassed 1 (considered the minimum threshold for a healthy ratio) in each of the five years, demonstrating Standex International's ability to comfortably meet its interest obligations. The substantial increases in the interest coverage ratio in 2023 and 2024 suggest that the company's earnings have grown at a faster rate than its interest expenses during these years.
Standex International Corporation's consistently high interest coverage ratios indicate a low risk of default on its debt obligations due to its strong earnings performance relative to its interest payments. Overall, the trend in Standex International's interest coverage ratio reflects improved financial health and a solid ability to service its debt in the last five years.
Peer comparison
Jun 30, 2024