John Wiley & Sons (WLY)
Interest coverage
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -138,044 | 70,845 | 229,463 | 194,295 | -38,133 |
| Interest expense | US$ in thousands | 49,003 | 37,745 | 19,802 | 18,383 | 24,959 |
| Interest coverage | -2.82 | 1.88 | 11.59 | 10.57 | -1.53 |
April 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-138,044K ÷ $49,003K
= -2.82
John Wiley & Sons' interest coverage ratio has fluctuated over the past five years. In April 2024, the interest coverage ratio deteriorated significantly to -2.82 from the previous year's 1.88, indicating that the company's operating income was insufficient to cover its interest expenses, potentially raising concerns about the company's ability to meet its financial obligations. This sharp decline may suggest operational challenges or financial distress.
In the two preceding years, the interest coverage ratio was favorable, standing at 11.59 in April 2022 and 10.57 in April 2021, indicating a strong ability to meet interest payments comfortably. However, a notable decline was observed in the interest coverage ratio in April 2020, falling to -1.53, signaling a situation where the company's operating income was insufficient to cover its interest expenses at that time.
Overall, the fluctuating trend in John Wiley & Sons' interest coverage ratio highlights the importance of monitoring the company's ability to generate sufficient earnings to cover its interest obligations. Investors and stakeholders should closely assess the company's financial position and operational performance to understand the factors contributing to these fluctuations and evaluate the associated risks.
Peer comparison
Apr 30, 2024