Worthington Industries Inc (WOR)
Interest coverage
| Aug 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 233,680 | 377,087 | 400,981 | 395,273 | 359,485 | 297,936 | 316,686 | 437,564 | 525,745 | 561,017 | 557,504 | 322,724 | 930,408 | 811,224 | 759,073 | 920,278 | 136,754 | 163,695 | 180,723 | 160,052 |
| Interest expense (ttm) | US$ in thousands | 3,782 | 7,807 | 11,943 | 17,386 | 24,910 | 28,563 | 32,517 | 32,217 | 31,337 | 30,820 | 30,238 | 30,474 | 30,346 | 30,155 | 29,959 | 29,726 | 31,616 | 33,679 | 35,658 | 37,815 |
| Interest coverage | 61.79 | 48.30 | 33.57 | 22.74 | 14.43 | 10.43 | 9.74 | 13.58 | 16.78 | 18.20 | 18.44 | 10.59 | 30.66 | 26.90 | 25.34 | 30.96 | 4.33 | 4.86 | 5.07 | 4.23 |
August 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $233,680K ÷ $3,782K
= 61.79
The interest coverage ratio measures a company's ability to cover its interest expense with its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
Looking at the trend of Worthington Industries Inc's interest coverage ratio over the past years, we can see fluctuations in the ratio. The interest coverage ratio has generally been at healthy levels, indicating that the company has been able to comfortably cover its interest payments with its operating income.
In the most recent period, the interest coverage ratio was 61.79, which is significantly higher compared to the previous periods. This suggests that Worthington Industries Inc's ability to cover its interest expenses improved substantially in the most recent period, which may indicate improved financial health and stability.
However, it is important to note that the interest coverage ratio can be influenced by various factors such as changes in interest rates, operating performance, and debt levels. Therefore, it is advisable to consider other financial metrics and factors when assessing the overall financial health of Worthington Industries Inc.
Peer comparison
Aug 31, 2024