Thor Industries Inc (THO)
Interest coverage
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 448,722 | 596,831 | 1,549,520 | 937,128 | 381,808 |
| Interest expense | US$ in thousands | 99,970 | 97,447 | 90,092 | 93,545 | 107,322 |
| Interest coverage | 4.49 | 6.12 | 17.20 | 10.02 | 3.56 |
July 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $448,722K ÷ $99,970K
= 4.49
Based on the historical data provided for Thor Industries Inc, the interest coverage ratio has fluctuated over the past five years. The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt with its earnings before interest and taxes (EBIT). A higher ratio indicates a stronger ability to cover interest expenses.
In 2024, the interest coverage ratio was 4.49, which indicates that the company's earnings were able to cover its interest expenses approximately 4.49 times. This ratio has decreased from the previous year, where the ratio was 6.12, suggesting a potential weakening in the company's ability to cover its interest payments.
Looking back over the five-year period, the interest coverage ratio has shown variability, with the highest ratio of 17.20 in 2022 and the lowest ratio of 3.56 in 2020. A high ratio, such as the one seen in 2022, indicates a strong ability to cover interest expenses, while a lower ratio, like in 2020, suggests a potential risk in meeting interest obligations.
Overall, it is important for stakeholders to monitor Thor Industries Inc's interest coverage ratio closely to ensure the company's financial health and ability to manage its debt obligations effectively.
Peer comparison
Jul 31, 2024