WD-40 Co (WD-40 Co) Interest Coverage

: 20.77 (As of Feb. 2024)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. WD-40 Co's Operating Income for the three months ended in Feb. 2024 was $20.9 Mil. WD-40 Co's Interest Expense for the three months ended in Feb. 2024 was $-1.0 Mil. WD-40 Co's interest coverage for the quarter that ended in Feb. 2024 was 20.77. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for WD-40 Co's Interest Coverage or its related term are showing as below:

WDFC' s Interest Coverage Range Over the Past 10 Years
Min: 15.98 Med: 32.14 Max: 63.61
Current: 18.45

WDFC's Interest Coverage is ranked better than
62.9% of 1194 companies
in the Chemicals industry
Industry Median: 9.8 vs WDFC: 18.45

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

WD-40 Co Interest Coverage Historical Data

The historical data trend for WD-40 Co's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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WD-40 Co Annual Data

Trend

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

Interest Coverage

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32.42

31.66

37.09

31.85

15.98

WD-40 Co Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Interest Coverage	Get a 7-Day Free Trial															14.75	16.07	17.26	21.10	20.77

Competitive Comparison

For the Specialty Chemicals subindustry, WD-40 Co's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

WD-40 Co Interest Coverage Distribution

For the Chemicals industry and Basic Materials sector, WD-40 Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where WD-40 Co's Interest Coverage falls into.

WD-40 Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

WD-40 Co's Interest Coverage for the fiscal year that ended in Aug. 2023 is calculated as

Here, for the fiscal year that ended in Aug. 2023, WD-40 Co's Interest Expense was $-5.6 Mil. Its Operating Income was $89.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $115.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Aug. 2023 )	/	Interest Expense (A: Aug. 2023 )
	=	-1	*	89.724	/	-5.614
	=	15.98

WD-40 Co's Interest Coverage for the quarter that ended in Feb. 2024 is calculated as

Here, for the three months ended in Feb. 2024, WD-40 Co's Interest Expense was $-1.0 Mil. Its Operating Income was $20.9 Mil. And its Long-Term Debt & Capital Lease Obligation was $91.4 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Feb. 2024 )	/	Interest Expense (Q: Feb. 2024 )
	=	-1	*	20.941	/	-1.008
	=	20.77

The higher the ratio, the stronger the company's Financial Strength is.

WD-40 Co (NAS:WDFC) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

WD-40 Co Interest Coverage Related Terms

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WD-40 Co (WD-40 Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » WD-40 Co (NAS:WDFC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

WD1:Germany WD1:Germany

Address

9715 Businesspark Avenue, San Diego, CA, USA, 92131

Website

https://www.wd40company.com

WD-40 Co manufactures and sells lubricants and cleaning products. The firm's product categories include maintenance and cleaning products. Maintenance products include the WD-40 signature brand aerosol spray lubricant as well as degreasers, rust removers, and bicycle maintenance products. Cleaning products include toilet cleaners, carpet stain removers and deodorizers, and heavy-duty hand soaps used to clean grease. The company organizes itself into three segments based on geography: Americas, Europe/Middle East/Africa, and Asia-Pacific. Around half of the company's revenue comes from the Americas segment, which includes the United States, Canada, and Latin America.

Executives

Sara Kathleen Hyzer	officer: VP, Finance & CFO	C/O: WD-40 COMPANY, 9715 BUSINESSPARK AVE., SAN DIEGO CA 92131
Jeffrey G Lindeman	officer: VP, Chief People, Cult. & Cap.	9715 BUSINESSPARK AVENUE, SAN DIEGO CA 92131
Phenix Q. Kiamilev	officer: VP, General Counsel & Corp Sec	9715 BUSINESSPARK AVENUE, SAN DIEGO CA 92131
Steven A Brass	director, officer: President and CEO	WD-40 COMPANY, 1061 CUDAHY PLACE, SAN DIEGO CA 92110
William B Noble	officer: Group MD, EMEA & Emerging Mkts	BRICK CLOSE, KIIN FARM, MILTON KEYNES X0 MK1 13LJ
Patricia Q Olsem	officer: Division President, Americas	9715 BUSINESSPARK AVENUE, SAN DIEGO CA 92131
Cynthia Burks	director	C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Geoffrey Holdsworth	officer: Managing Director AsiaPacific	27 MUNGARRA AVENUE, ST. IVES, SYDNEY C3 2075
Eric Etchart	director	ROOM F, 22F CROSS REGION PLAZA, 899 LINGLING ROAD, SHANGHAI F4 200030
Magee Edward O Jr	director	9715 BUSINESSPARK AVENUE, SAN DIEGO CA 92131
Richard T Clampitt	officer: VP, General Counsel	WD-40 COMPANY, 1061 CUDAHY PLACE, SAN DIEGO CA 92110
Garry O Ridge	director, officer: President & CEO	1061 CUDAHY PL, SAN DIEGO CA 92110
Lara L Lee	director	C/O MARRONE BIO INNOVATIONS, INC., 1540 DREW AVENUE, DAVIS CA 95618
Jay Rembolt	officer: Principal Accounting Officer	1061 CUDAHY PL, SAN DIEGO CA 92110
Graciela Monteagudo	director	FOUR CORPORATE DRIVE, LAKE ZURICH IL 60047