YETI Holdings Inc (YETI)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 245,376 | 226,888 | 120,643 | 271,749 | 214,356 |
| Interest expense | US$ in thousands | 649 | 942 | 4,466 | 3,339 | 9,155 |
| Interest coverage | 378.08 | 240.86 | 27.01 | 81.39 | 23.41 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $245,376K ÷ $649K
= 378.08
YETI Holdings Inc's interest coverage ratio has shown a positive trend over the past five years. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt, with a higher ratio indicating a stronger ability to cover interest expenses.
As of December 31, 2020, the interest coverage ratio stood at 23.41, indicating that YETI Holdings Inc generated 23.41 times more operating income than needed to cover its interest expenses for that year. This ratio increased significantly to 81.39 by December 31, 2021, reflecting a substantial improvement in the company's ability to cover interest payments.
In the following years, YETI Holdings Inc maintained a relatively strong interest coverage ratio of 27.01 as of December 31, 2022, and 240.86 as of December 31, 2023, demonstrating a consistent ability to comfortably cover its interest obligations.
By December 31, 2024, YETI Holdings Inc's interest coverage ratio surged to 378.08, signaling a marked increase in the company's capacity to service its debt with operating income. This trend towards higher interest coverage ratios is favorable, indicating that the company has sufficient earnings to meet its interest obligations with a comfortable margin.
Overall, YETI Holdings Inc's interest coverage ratio has exhibited a positive trajectory, suggesting a strong financial position and ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2024