Vista Outdoor Inc (VSTO)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 50,453 | -304,501 | -27,127 | 28,996 | 109,235 | 554,538 | 616,160 | 674,991 | 646,222 | 592,491 | 520,992 | 405,509 | 309,896 | 63,289 | -5,490 | -79,006 | -131,803 | -20,728 | -554,548 | -575,434 |
| Interest expense (ttm) | US$ in thousands | 10,098 | -26,273 | -9,388 | 2,470 | 6,702 | 46,159 | 33,901 | 25,896 | 25,264 | 26,124 | 25,048 | 24,834 | 25,574 | 24,732 | 27,486 | 34,085 | 38,791 | 42,662 | 50,292 | 54,843 |
| Interest coverage | 5.00 | — | — | 11.74 | 16.30 | 12.01 | 18.18 | 26.07 | 25.58 | 22.68 | 20.80 | 16.33 | 12.12 | 2.56 | -0.20 | -2.32 | -3.40 | -0.49 | -11.03 | -10.49 |
March 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $50,453K ÷ $10,098K
= 5.00
Interest coverage ratio is a financial metric used to assess a company's ability to pay interest expenses on its outstanding debt. A higher ratio indicates a greater ability to meet interest obligations.
Based on the data provided for Vista Outdoor Inc, the interest coverage ratio fluctuated significantly over the periods analyzed. The ratio was positive and ranged from 2.56 to 26.07, indicating the company's varying ability to cover its interest expenses with its earnings before interest and taxes.
The most recent observation stood at 5.00 as of March 31, 2024, signaling that the company's operating income was five times its interest expenses for the period. This indicates a relatively healthy interest coverage ratio for the company during this quarter.
However, it is notable that there were periods, such as in March 2020 and September 2019, where the interest coverage ratio was negative, indicating that the company's earnings were insufficient to cover its interest expenses during these quarters. This may raise concerns about the company's financial health and ability to service its debt effectively during those periods.
Overall, the trend in Vista Outdoor Inc's interest coverage ratio suggests that the company has experienced fluctuations in its ability to cover interest expenses with operating income, emphasizing the importance of consistent monitoring of this ratio for assessing the company's financial stability and risk profile.
Peer comparison
Mar 31, 2024