Tractor Supply Company (TSCO)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,478,910 | 1,434,940 | 1,306,700 | 996,928 | 743,220 |
| Interest expense | US$ in thousands | 46,510 | 30,633 | 26,610 | 28,781 | 19,843 |
| Interest coverage | 31.80 | 46.84 | 49.11 | 34.64 | 37.46 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,478,910K ÷ $46,510K
= 31.80
Tractor Supply Company's interest coverage has shown a decreasing trend from 2019 to 2023, indicating a decline in the company's ability to cover its interest expenses with its operating income. Despite the decrease, the interest coverage ratio remains at healthy levels, with values above 30 in all years, suggesting that the company can comfortably meet its interest obligations. The significant drop in interest coverage from 2019 to 2020 may have been due to changes in the company's financial structure or increased interest expenses. Overall, while the decreasing trend should be monitored, Tractor Supply Company's interest coverage ratio remains strong, indicating a solid ability to pay its interest expenses.
Peer comparison
Dec 31, 2023