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