WD-40 Company (WDFC)
Interest coverage
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 96,351 | 90,777 | 86,850 | 88,894 | 77,954 |
| Interest expense | US$ in thousands | 4,287 | 5,614 | 2,742 | 2,395 | 2,439 |
| Interest coverage | 22.48 | 16.17 | 31.67 | 37.12 | 31.96 |
August 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $96,351K ÷ $4,287K
= 22.48
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. WD-40 Company's interest coverage ratio has fluctuated over the past five years, ranging from 16.17 to 37.12.
In 2024, the interest coverage ratio was 22.48, indicating that the company earned 22.48 times the amount needed to cover its interest expenses. This is a strong ratio, suggesting that WD-40 Company has sufficient income to comfortably cover its interest obligations.
While the ratio decreased in 2023 to 16.17, it rebounded in 2022 to 31.67, and further increased in 2021 to 37.12. These high ratios indicate that the company has been effectively managing its interest expenses and generating enough earnings to cover its debt obligations multiple times over.
Overall, WD-40 Company's interest coverage ratio has shown stability and strength over the years, reflecting a healthy financial position and a solid ability to meet its interest payments.
Peer comparison
Aug 31, 2024