Tyson Foods Inc (TSN)
Interest coverage
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,409,000 | -395,000 | 4,410,000 | 4,396,000 | 3,008,000 |
| Interest expense | US$ in thousands | — | 355,000 | 365,000 | 428,000 | 485,000 |
| Interest coverage | — | -1.11 | 12.08 | 10.27 | 6.20 |
September 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,409,000K ÷ $—K
= —
Interest coverage is a financial ratio that indicates a company's ability to pay interest expenses on its outstanding debt. A higher interest coverage ratio is generally favorable as it implies the company has more income available to cover interest payments.
Looking at Tyson Foods Inc's interest coverage ratio over the past five years, we observe a fluctuating trend. In 2020, the interest coverage ratio was 6.20, indicating the company had sufficient income to cover its interest expenses. Subsequently, the ratio increased significantly to 10.27 in 2021 and further to 12.08 in 2022, suggesting an improvement in the company's ability to meet its interest obligations comfortably.
However, in 2023, there was a significant decline in the interest coverage ratio to -1.11, which is a concerning sign as it indicates that the company's earnings were not sufficient to cover its interest expenses for that period. It is crucial for the company to address this sharp decrease in interest coverage.
Unfortunately, the interest coverage ratio data for September 30, 2024, is missing, making it challenging to provide a comprehensive analysis for the most recent period. As such, close monitoring of Tyson Foods Inc's financial performance and actions taken to improve its interest coverage ratio will be essential to assess the company's financial health accurately.
Peer comparison
Sep 30, 2024