Thor Industries Inc (THO)

Interest coverage

Jul 31, 2024 Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 422,951 434,354 448,233 490,038 596,831 797,242 1,103,012 1,416,640 1,549,517 1,509,156 1,281,936 1,099,609 937,128 791,053 580,355 454,642 381,808 349,189 378,086 317,074
Interest expense (ttm) US$ in thousands 74,199 80,253 80,975 97,573 97,447 91,258 89,029 89,463 90,092 86,667 90,616 90,182 93,545 100,443 100,503 103,573 107,322 112,995 121,636 95,261
Interest coverage 5.70 5.41 5.54 5.02 6.12 8.74 12.39 15.83 17.20 17.41 14.15 12.19 10.02 7.88 5.77 4.39 3.56 3.09 3.11 3.33

July 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $422,951K ÷ $74,199K
= 5.70

Thor Industries Inc's interest coverage ratio has shown a fluctuating trend over the past several periods. The ratio indicates the company's ability to meet its interest obligations from its operating income. A higher interest coverage ratio suggests that the company is more capable of servicing its debt.

In the most recent period, ending July 31, 2024, the interest coverage ratio stood at 5.70, showing a slight decrease from the previous quarter but still at a healthy level. Looking back over the past few quarters, the ratio has generally remained above 5, indicating that Thor Industries Inc has been comfortably covering its interest expenses with its operating earnings.

It is worth noting that the interest coverage ratio peaked at 17.41 in April 2022, which was notably higher compared to other periods. This may suggest a period of particularly strong operating performance relative to the company's interest obligations. However, the ratio has since decreased but has generally remained above the 5 level, reflecting a relatively stable financial position.

Overall, Thor Industries Inc's interest coverage ratios indicate a consistent ability to meet its interest payments from operating income, providing assurance to creditors and investors about the company's financial health and ability to manage its debt obligations.


Peer comparison

Jul 31, 2024

Company name
Symbol
Interest coverage
Thor Industries Inc
THO
5.70
Winnebago Industries Inc
WGO
19.97