Standex International Corporation (SXI)
Interest coverage
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 92,743 | 86,083 | 86,555 | 107,369 | 112,292 | 111,052 | 113,306 | 113,410 | 111,524 | 110,380 | 107,785 | 104,535 | 100,856 | 97,412 | 92,348 | 84,924 | 77,306 | 66,811 | 61,173 | 61,784 |
| Interest expense (ttm) | US$ in thousands | 23,931 | 16,215 | 8,801 | 4,245 | 4,544 | 4,481 | 4,947 | 5,494 | 5,405 | 5,558 | 5,381 | 5,341 | 5,874 | 6,073 | 6,152 | 6,227 | 5,991 | 6,057 | 6,514 | 6,841 |
| Interest coverage | 3.88 | 5.31 | 9.83 | 25.29 | 24.71 | 24.78 | 22.90 | 20.64 | 20.63 | 19.86 | 20.03 | 19.57 | 17.17 | 16.04 | 15.01 | 13.64 | 12.90 | 11.03 | 9.39 | 9.03 |
June 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $92,743K ÷ $23,931K
= 3.88
The interest coverage ratios of Standex International Corporation over the available period demonstrate a generally strong and improving capacity to meet its interest obligations. Beginning at approximately 9.03 as of September 30, 2020, the ratio experienced a steady upward trend, reaching a peak of approximately 25.29 by September 30, 2024. This indicates that, during this period, the company’s earnings before interest and taxes (EBIT) significantly exceeded its interest expenses, reflecting a comfortable financial position to service its debt.
From late 2020 through mid-2024, the ratios display a consistent increase, suggesting improved profitability relative to interest costs, possibly due to operational efficiencies, revenue growth, or both. The elevated ratios in this period — consistently above 20 — imply a substantial safety margin for interest payments, reducing default risk and signaling financial stability.
However, after reaching a high of around 25.29 at September 2024, the interest coverage ratio shows a sharp decline, dropping to 9.83 at December 2024, and further declining to 5.31 by March 2025. These decreases indicate a significant reduction in EBIT relative to interest expenses, which could signal deteriorating operational performance, increased borrowing costs, or one-time expenses impacting earnings.
This downward trend toward early 2025 warrants attention, as it suggests the company’s cushion for interest payments has narrowed considerably compared to previous years. Nonetheless, the ratios, even at their lowest points in the latest period, remain above 3.88, which generally indicates the company still maintains a basic level of ability to cover interest expenses, albeit with a reduced margin of safety.
In summary, over the analyzed period, Standex International Corporation exhibited a strong and rising interest coverage capacity through 2024, reflecting effective earnings generation relative to debt servicing costs. The recent decline signals a potential concern for financial flexibility in the near term, necessitating further evaluation of underlying earnings trends and debt management strategies.
Peer comparison
Jun 30, 2025