YETI Holdings Inc (YETI)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 226,912 | 87,290 | 90,634 | 101,544 | 120,632 | 250,928 | 257,232 | 266,190 | 271,749 | 261,280 | 263,820 | 239,789 | 214,362 | 143,233 | 106,904 | 94,514 | 89,024 | 114,211 |
| Interest expense (ttm) | US$ in thousands | 942 | 2,855 | 4,065 | 4,294 | 4,466 | 4,041 | 3,379 | 3,251 | 3,339 | 3,944 | 5,074 | 6,899 | 9,155 | 12,428 | 15,784 | 18,822 | 21,779 | 23,887 |
| Interest coverage | 240.88 | 30.57 | 22.30 | 23.65 | 27.01 | 62.10 | 76.13 | 81.88 | 81.39 | 66.25 | 51.99 | 34.76 | 23.41 | 11.53 | 6.77 | 5.02 | 4.09 | 4.78 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $226,912K ÷ $942K
= 240.88
The interest coverage ratio for YETI Holdings Inc has exhibited fluctuations over the past few years, indicating variations in the company's ability to cover its interest expenses with operating income. The trend shows a significant improvement from Dec 2019 to Dec 2021, with the ratio steadily increasing. This suggests that the company was generating sufficient operating income to comfortably cover its interest expenses during this period.
However, starting from Mar 2022, there was a notable decline in the interest coverage ratio, with a sharp decrease in the ratio from Jun 2022 to Mar 2023. This may signal potential concerns regarding the company's ability to meet its interest obligations using its operating income.
Although there was a substantial improvement in interest coverage in the most recent quarter (Dec 2023), with a ratio of 240.88, it is important for investors and stakeholders to monitor this trend closely to assess the company's financial health and ability to service its debt obligations in the long term.
Peer comparison
Dec 31, 2023