United Natural Foods Inc (UNFI)
Interest coverage
| Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | Apr 27, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -21,000 | 26,000 | 145,000 | 290,000 | 382,000 | 450,000 | 459,000 | 468,000 | 443,000 | 435,000 | 387,000 | 392,114 | 416,715 | 295,033 | -173,140 | -139,115 | -167,734 | -547,879 | -162,730 | -236,732 |
| Interest expense (ttm) | US$ in thousands | 145,000 | 144,000 | 144,000 | 143,000 | 145,000 | 150,000 | 155,000 | 161,000 | 168,000 | 175,000 | 204,000 | 210,186 | 213,455 | 211,291 | 192,000 | 205,665 | 213,313 | 223,184 | 181,000 | 125,114 |
| Interest coverage | -0.14 | 0.18 | 1.01 | 2.03 | 2.63 | 3.00 | 2.96 | 2.91 | 2.64 | 2.49 | 1.90 | 1.87 | 1.95 | 1.40 | -0.90 | -0.68 | -0.79 | -2.45 | -0.90 | -1.89 |
January 27, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-21,000K ÷ $145,000K
= -0.14
The interest coverage ratio of United Natural Foods Inc. has exhibited some fluctuations over the past eight quarters. The trend shows a gradual decline from a high of 2.32 in Q1 2023 to a low of 0.18 in Q2 2024. This indicates a significant deterioration in the company's ability to meet its interest obligations with its earnings.
The ratio dropped notably below 1 in the latest quarter (Q2 2024), suggesting that the company's operating income may not be sufficient to cover its interest expenses. This raises concerns about the company's financial health and its ability to service its debt effectively.
It is important for stakeholders and investors to closely monitor this trend and assess the company's ability to generate enough earnings to cover its interest payments in the future. Further analysis of the company's financial performance and debt structure may be necessary to understand the reasons behind the declining interest coverage ratio.
Peer comparison
Jan 27, 2024