Winnebago Industries Inc (WGO)
Interest coverage
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 100,200 | 299,700 | 556,000 | 407,900 | 114,737 |
| Interest expense | US$ in thousands | 3,200 | 20,500 | 41,300 | 40,400 | 37,461 |
| Interest coverage | 31.31 | 14.62 | 13.46 | 10.10 | 3.06 |
August 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $100,200K ÷ $3,200K
= 31.31
Winnebago Industries Inc's interest coverage ratio has shown a consistent improvement over the past five years. The ratio has increased significantly from 3.06 in 2020 to 31.31 in 2024, indicating the company's ability to cover its interest expenses with operating profits. This upward trend signifies a positive development in the company's financial health and suggests that Winnebago has been able to generate far more earnings relative to its interest obligations in recent years. This improvement reflects a stronger financial position for the company and potentially lower financial risk in terms of debt repayment capability. Overall, the rising interest coverage ratio is a favorable indicator of Winnebago Industries Inc's financial stability and ability to meet its debt obligations efficiently.
Peer comparison
Aug 31, 2024