USANA Health Sciences Inc (USNA)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 102,715 | 98,793 | 101,475 | 104,026 | 108,813 | 117,643 | 134,755 | 159,677 | 170,699 | 192,458 | 197,742 | 183,612 | 178,455 | 170,856 | 161,114 | 153,440 | 150,562 | 154,210 | 164,834 | 183,851 |
| Interest expense (ttm) | US$ in thousands | 262 | 149 | 138 | 191 | 192 | 178 | 164 | 84 | 57 | -1,069 | 290 | 491 | 507 | 1,637 | 282 | 75 | 66 | 53 | 39 | 38 |
| Interest coverage | 392.04 | 663.04 | 735.33 | 544.64 | 566.73 | 660.92 | 821.68 | 1,900.92 | 2,994.72 | — | 681.87 | 373.96 | 351.98 | 104.37 | 571.33 | 2,045.87 | 2,281.24 | 2,909.62 | 4,226.51 | 4,838.18 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $102,715K ÷ $262K
= 392.04
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
Based on the data provided for USANA Health Sciences Inc, we observe fluctuations in the interest coverage ratio over the past years. The interest coverage ratio has shown a general upward trend from 2019 to 2023, hitting its peak at 4,838.18 in Sep 2019.
The company has demonstrated strong interest coverage ratios in recent quarters, with values well above 500 and even exceeding 1,900 in certain periods. This signifies a robust ability to cover interest payments with its operating earnings.
The substantial increase in interest coverage ratio from previous years reflects an improved financial performance and a better financial position for USANA Health Sciences Inc, indicating a lower risk of default on its debt obligations. Investors and creditors may view this positively as it indicates the company's resilience and sustainability in managing its debt burden.