US Foods Holding Corp (USFD)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,100,000 | 1,078,000 | 1,009,000 | 980,000 | 1,002,000 | 924,000 | 933,000 | 764,000 | 616,000 | 558,000 | 480,000 | 455,000 | 427,000 | 318,000 | 261,000 | 76,000 | -56,000 | 87,000 | 191,000 | 442,000 |
| Interest expense (ttm) | US$ in thousands | 315,000 | 315,000 | 321,000 | 322,000 | 324,000 | 319,000 | 303,000 | 281,000 | 255,000 | 235,000 | 220,000 | 214,000 | 213,000 | 218,000 | 231,000 | 240,000 | 238,000 | 235,000 | 215,000 | 194,000 |
| Interest coverage | 3.49 | 3.42 | 3.14 | 3.04 | 3.09 | 2.90 | 3.08 | 2.72 | 2.42 | 2.37 | 2.18 | 2.13 | 2.00 | 1.46 | 1.13 | 0.32 | -0.24 | 0.37 | 0.89 | 2.28 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,100,000K ÷ $315,000K
= 3.49
Interest coverage ratio indicates a company's ability to meet its interest obligations on outstanding debt. A higher ratio implies that the company is better positioned to cover its interest expenses.
Analyzing the interest coverage ratio of US Foods Holding Corp over the provided periods:
- From March 31, 2020, to December 31, 2020, the interest coverage ratio rapidly declined from 2.28 to -0.24, indicating a significant deterioration in the company's ability to cover interest payments.
- However, from March 31, 2021, to December 31, 2024, the interest coverage ratio consistently improved, reaching a peak of 3.49 as of December 31, 2024.
- The positive trend in the interest coverage ratio from 2021 to 2024 suggests that US Foods Holding Corp has been able to enhance its ability to meet interest obligations over time.
Overall, the company has shown a positive turnaround in its interest coverage, reflecting a better financial position in recent years. Further monitoring of this ratio will be crucial to ensure sustained improvement in the company's ability to manage its debt and interest payments effectively.
Peer comparison
Dec 31, 2024