AZEK (The AZEK Co) Interest Coverage : 3.57 (As of Sep. 2024)

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What is The AZEK Co Interest Coverage?

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. The AZEK Co's Operating Income for the three months ended in Sep. 2024 was $51 Mil. The AZEK Co's Interest Expense for the three months ended in Sep. 2024 was $-14 Mil. The AZEK Co's interest coverage for the quarter that ended in Sep. 2024 was 3.57. The higher the ratio, the stronger the company's financial strength is.

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

AZEK' s Interest Coverage Range Over the Past 10 Years
Min: 0.76 Med: 3.65 Max: 8.03
Current: 4.33

AZEK's Interest Coverage is ranked worse than
63.42% of 1293 companies
in the Construction industry
Industry Median: 6.79 vs AZEK: 4.33

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

The AZEK Co Interest Coverage Historical Data

The historical data trend for The AZEK 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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The AZEK Co Interest Coverage Chart

The AZEK Co Annual Data

Trend

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Sep24

Interest Coverage

Get a 7-Day Free Trial

8.03

6.48

2.96

4.33

The AZEK Co Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Interest Coverage	Get a 7-Day Free Trial															5.19	1.16	6.28	6.42	3.57

Competitive Comparison of The AZEK Co's Interest Coverage

For the Building Products & Equipment subindustry, The AZEK 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.

The AZEK Co's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, The AZEK Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where The AZEK Co's Interest Coverage falls into.

The AZEK 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.

The AZEK Co's Interest Coverage for the fiscal year that ended in Sep. 2024 is calculated as

Here, for the fiscal year that ended in Sep. 2024, The AZEK Co's Interest Expense was $-49 Mil. Its Operating Income was $214 Mil. And its Long-Term Debt & Capital Lease Obligation was $430 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2024 )	/	Interest Expense (A: Sep. 2024 )
	=	-1	*	214.023	/	-49.382
	=	4.33

The AZEK Co's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, The AZEK Co's Interest Expense was $-14 Mil. Its Operating Income was $51 Mil. And its Long-Term Debt & Capital Lease Obligation was $430 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2024 )	/	Interest Expense (Q: Sep. 2024 )
	=	-1	*	51.018	/	-14.273
	=	3.57

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

The AZEK Co (NYSE:AZEK) 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 .

The AZEK Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of The AZEK Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

The AZEK Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » The AZEK Co Inc (NYSE:AZEK) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

1330 W Fulton Street, Suite 350, Chicago, IL, USA, 60607

Website

https://www.azekco.com

The AZEK Co Inc is a designer and manufacturer of beautiful, low maintenance and environmentally sustainable products focused on the fast-growing Outdoor Living market. Its portfolio of products includes decks, rail, trim, outdoor furniture among others. The company operates in two segments: Residential Segment that manufactures and distributes decking, railing, trim, moulding, pergolas and cabanas and accessories through a national network of dealers and distributors and multiple home improvement retailers; and Commercial Segment that manufactures, fabricates and distributes lockers and bathroom partitions. It generates maximum revenue from the Residential segment. The company's brand includes TimberTech; AZEK; Versatex, Ultralox, StruXure, and Intex.

Executives

Jonathan Skelly	officer: See Remarks	1330 W. FULTON MARKET STREET, SUITE 350, CHICAGO IL 60607
Jesse G Singh	director, officer: CEO and President	16430 N. SCOTTSDALE ROAD, SUITE 400, SCOTTSDALE AZ 85254
Pamela J Edwards	director	104 COLEMAN BOULEVARD, SAVANNAH GA 31408
Amanda Cimaglia	officer: VP of ESG and IR	1330 WEST FULTON MARKET STREET, SUITE 350, CHICAGO IL 60607
Michelle A Kasson	officer: Chief Information Officer	1330 W. FULTON MARKET STREET, SUITE 350, CHICAGO IL 60607
Samara Toole	officer: Chief Marketing Officer	1330 W FULTON STREET, SUITE 350, CHICAGO IL 60607
Randy Herth	officer: Chief Accounting Officer	1330 W. FULTON ST., SUITE 350, CHICAGO IL 60607
Harmit J Singh	director	71 SOUTH WACKER DRIVE, 12TH FLOOR, CHICAGO IL 60606
Ares Corporate Opportunities Fund Iv, L.p.	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ontario Teachers Pension Plan Board	director, 10 percent owner	5650 YONGE STREET, TORONTO A6 M2M 4H5
Christopher Latkovic	officer: SVP, Operations	1330 W. FULTON STREET, SUITE 350, CHICAGO IL 60607
Gary E Hendrickson	director	1101 THIRD STREET SOUTH, MINNEAPOLIS MN 55415
Vernon J Nagel	director	1330 W. FULTON STREET, SUITE 350, CHICAGO IL 60607
Sandra Lamartine	officer: CHRO	1330 WEST FULTON MARKET STREET, SUITE 350, CHICAGO IL 60607
Peter G Clifford	officer: CFO	40 TOURNAMENT DRIVE SOUTH, HAWTHORN WOODS IL 60047