Winnebago Industries Inc (WGO)
Interest coverage
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 299,700 | 556,000 | 407,900 | 114,737 | 156,848 |
| Interest expense | US$ in thousands | 20,500 | 41,300 | 40,400 | 37,461 | 17,939 |
| Interest coverage | 14.62 | 13.46 | 10.10 | 3.06 | 8.74 |
August 26, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $299,700K ÷ $20,500K
= 14.62
The interest coverage ratio measures a company's ability to meet its interest obligations with its earnings. Winnebago Industries, Inc.'s interest coverage has shown a positive trend over the past five years. The ratio increased from 8.66 in 2019 to 14.67 in 2023, indicating that the company's ability to cover its interest expenses with operating earnings has significantly improved. This suggests that the company's profitability and cash flow from operations have strengthened, providing a larger buffer to cover interest payments. The consistent improvement in interest coverage reflects a positive financial performance and indicates reduced risk of default on interest payments.
Peer comparison
Aug 26, 2023