United Natural Foods Inc (UNFI)
Interest coverage
| Aug 3, 2024 | Apr 27, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 19,000 | -52,000 | -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 |
| Interest expense (ttm) | US$ in thousands | 11,000 | 147,000 | 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 |
| Interest coverage | 1.73 | -0.35 | -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 |
August 3, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $19,000K ÷ $11,000K
= 1.73
Interest coverage measures a company's ability to pay interest expenses on its outstanding debt. A higher interest coverage ratio indicates a company is more capable of meeting its interest obligations.
Looking at United Natural Foods Inc's interest coverage over the past few quarters, we observe fluctuations in the ratio. The company experienced a significant decline in interest coverage in the second and third quarters of 2024, with ratios of -0.35 and -0.14 respectively, indicating potential difficulties in meeting interest payments with its earnings during these periods.
However, in the first quarter of 2024, interest coverage improved to 0.18, although still below ideal levels. In contrast, interest coverage rebounded in the fourth quarter of 2023 to a healthier level of 1.01, demonstrating improved ability to cover interest expenses.
The trend of interest coverage improved further in the first three quarters of 2023, reaching ratios of 2.03, 2.63, and 3.00, indicating a stronger ability to handle interest payments during those periods.
Overall, considering the fluctuating nature of the interest coverage ratios for United Natural Foods Inc, it is essential for stakeholders to closely monitor the company's financial performance and debt servicing capabilities in the future.
Peer comparison
Aug 3, 2024