Winnebago Industries Inc (WGO)
Interest coverage
| Feb 24, 2024 | Nov 25, 2023 | Aug 26, 2023 | May 27, 2023 | Feb 25, 2023 | Nov 26, 2022 | Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 25, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 177,300 | 252,600 | 299,700 | 361,600 | 446,300 | 501,600 | 555,900 | 555,364 | 492,893 | 462,879 | 407,900 | 356,648 | 246,020 | 175,648 | 114,737 | 90,841 | 148,274 | 147,470 | 156,848 | 157,802 |
| Interest expense (ttm) | US$ in thousands | 18,700 | 18,700 | 20,500 | 26,600 | 31,900 | 36,900 | 41,200 | 41,178 | 40,907 | 40,659 | 40,400 | 44,543 | 42,754 | 41,353 | 37,461 | 27,786 | 23,792 | 19,487 | 17,939 | 17,668 |
| Interest coverage | 9.48 | 13.51 | 14.62 | 13.59 | 13.99 | 13.59 | 13.49 | 13.49 | 12.05 | 11.38 | 10.10 | 8.01 | 5.75 | 4.25 | 3.06 | 3.27 | 6.23 | 7.57 | 8.74 | 8.93 |
February 24, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $177,300K ÷ $18,700K
= 9.48
The interest coverage ratio of Winnebago Industries Inc has fluctuated over the last few quarters. The ratio represents the company's ability to meet its interest obligations from its operating income. A higher interest coverage ratio indicates that the company is in a better position to cover its interest expenses.
Looking at the trend, we can observe that the interest coverage ratio has shown a general decreasing trend from a high of 14.62 in August 2023 to a low of 3.06 in August 2020. This downward trend may raise concerns about the company's ability to comfortably cover its interest payments.
It is worth noting that the interest coverage ratio has been above 1 in all periods, indicating Winnebago Industries Inc has generated enough operating income to cover its interest expenses. However, the declining trend suggests a potential strain on the company's ability to maintain the same level of interest coverage in the future.
Overall, Winnebago Industries Inc's interest coverage ratio analysis indicates a fluctuating trend with a general decrease over the past few quarters, highlighting the importance of monitoring the company's ability to service its interest obligations moving forward.
Peer comparison
Feb 24, 2024