John Wiley & Sons (WLY)
Interest coverage
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 173,026 | 198,648 | 70,643 | 2,350 | -127,644 | -94,389 | -64,644 | -1,389 | 74,045 | 30,658 | 144,910 | 162,160 | 227,856 | 227,303 | 211,226 | 208,588 | 194,295 | -21,980 | -3,244 | -12,958 |
| Interest expense (ttm) | US$ in thousands | 52,547 | 52,688 | 55,282 | 53,756 | 52,303 | 51,452 | 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 |
| Interest coverage | 3.29 | 3.77 | 1.28 | 0.04 | -2.44 | -1.83 | -1.39 | -0.03 | 1.96 | 0.95 | 5.61 | 7.54 | 11.51 | 11.84 | 11.15 | 11.33 | 10.57 | -1.11 | -0.15 | -0.55 |
April 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $173,026K ÷ $52,547K
= 3.29
The analysis of John Wiley & Sons' interest coverage ratio over the specified periods reveals significant fluctuations indicative of the company's changing ability to meet its interest obligations.
Between July 31, 2020, and October 31, 2020, the ratio was negative, at -0.55 and -0.15 respectively, signaling that interest expenses exceeded earnings before interest and taxes (EBIT), which is a concern for short-term solvency and suggests the company was unable to comfortably cover its interest costs during this timeframe.
This negative trend persisted into January 31, 2021, with an even more pronounced ratio of -1.11. However, a notable improvement occurred by April 30, 2021, when the ratio surged to 10.57, indicating a period where EBIT significantly exceeded interest expenses, enhancing the company's capacity to service its debt. This elevated level persisted into subsequent quarters, with ratios of 11.33 (July 31, 2021), 11.15 (October 31, 2021), 11.84 (January 31, 2022), and 11.51 (April 30, 2022), reflecting sustained strong earnings relative to interest obligations and robust coverage.
In the latter part of 2022, the ratios declined, with values of 7.54 (July 31), 5.61 (October 31), and further down to 0.95 (January 31, 2023). The sharp decrease approaching 2023 suggests a deterioration in EBIT relative to interest expenses, casting uncertainty on the company's ability to reliably meet interest commitments.
Subsequent quarters revealed continued volatility: the interest coverage turned negative again at -0.03 (July 31, 2023) and -1.39 (October 31, 2023), reaffirming periods where EBIT was insufficient to cover interest expenses. This pattern persisted into early 2024, with ratios worsening to -1.83 and -2.44, before a slight rebound to positive territory, with 0.04 (July 31, 2024), then increasing to 1.28 (October 31, 2024), indicating improved earnings capacity.
Looking forward, projections for the subsequent periods show further improvement, with ratios of 3.77 (January 31, 2025) and 3.29 (April 30, 2025), suggesting that the company's earnings are expected to again comfortably cover interest expenses.
Overall, the interest coverage ratios for John Wiley & Sons reflect a pattern of volatility with periods of significant distress—marked by negative ratios indicating insufficient earnings to cover interest costs—and periods of strong coverage, particularly from mid-2021 to early 2022. The recent trend indicates a recovery phase, with projections implying an improved ability to service interest expenses in the near term. However, the history of negative ratios underscores ongoing risk that warrants close monitoring, especially considering the fluctuations observed over the analyzed periods.
Peer comparison
Apr 30, 2025