John Wiley & Sons (WLY)
Interest coverage
| Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -138,044 | -107,289 | -74,244 | -7,489 | 70,845 | 31,565 | 145,817 | 163,767 | 229,463 | 227,374 | 211,297 | 208,659 | 194,366 | -22,807 | -4,114 | -13,818 | -38,146 | 205,989 | 205,572 | 202,248 |
| Interest expense (ttm) | US$ in thousands | 49,003 | 48,152 | 46,352 | 42,747 | 37,745 | 32,248 | 25,830 | 21,495 | 19,802 | 19,194 | 18,944 | 18,408 | 18,383 | 19,714 | 21,170 | 23,496 | 24,959 | 23,544 | 22,581 | 19,402 |
| Interest coverage | -2.82 | -2.23 | -1.60 | -0.18 | 1.88 | 0.98 | 5.65 | 7.62 | 11.59 | 11.85 | 11.15 | 11.34 | 10.57 | -1.16 | -0.19 | -0.59 | -1.53 | 8.75 | 9.10 | 10.42 |
April 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-138,044K ÷ $49,003K
= -2.82
The interest coverage ratio for John Wiley & Sons over the past several quarters has shown fluctuating trends. A negative interest coverage ratio indicates that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses during those periods. The company's interest coverage ratio has been inconsistent, with some quarters showing negative values and others demonstrating strong coverage.
In recent quarters, specifically in April 2023 and July 2023, the company struggled to cover its interest expenses, as evidenced by their negative interest coverage ratios. This indicates a potential risk to creditors and investors regarding the company's ability to meet its debt obligations from operating income.
However, the company showed improvement in its interest coverage in subsequent quarters, particularly from October 2023 to January 2024, where the interest coverage ratios moved into positive territory. This positive development suggests a better ability to service its debt through operating profits.
Overall, the company's interest coverage has been volatile, with periods of inadequate coverage followed by improvements. Investors and creditors should closely monitor John Wiley & Sons' financial performance to assess its ability to sustain healthy interest coverage ratios in the long run.
Peer comparison
Apr 30, 2024