Tractor Supply Company (TSCO)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,467,530 | 1,478,910 | 1,434,940 | 1,306,700 | 996,928 |
| Interest expense | US$ in thousands | 54,592 | 46,510 | 30,633 | 26,610 | 28,781 |
| Interest coverage | 26.88 | 31.80 | 46.84 | 49.11 | 34.64 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,467,530K ÷ $54,592K
= 26.88
The interest coverage ratio measures a company's ability to meet its interest obligations with its earnings. Tractor Supply Company has shown a consistent and strong interest coverage over the years. In December 2020, the interest coverage ratio was 34.64, indicating that the company earned 34.64 times the interest expense. This ratio improved in the following years, reaching 49.11 in December 2021, 46.84 in December 2022, and 31.80 in December 2023. However, there was a slight decrease in December 2024 with an interest coverage ratio of 26.88. Overall, Tractor Supply Company has maintained a healthy interest coverage ratio, indicating its ability to comfortably meet its interest obligations with its earnings.
Peer comparison
Dec 31, 2024