Thor Industries (FRA:TIV) Interest Coverage

: 0.65 (As of Jan. 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. Thor Industries's Operating Income for the three months ended in Jan. 2024 was €17 Mil. Thor Industries's Interest Expense for the three months ended in Jan. 2024 was €-26 Mil. Thor Industries's interest coverage for the quarter that ended in Jan. 2024 was 0.65. The higher the ratio, the stronger the company's financial strength is.

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

FRA:TIV' s Interest Coverage Range Over the Past 10 Years
Min: 3.6 Med: 37.27 Max: 24876.4
Current: 4.75

FRA:TIV's Interest Coverage is ranked worse than
61.69% of 1031 companies
in the Vehicles & Parts industry
Industry Median: 7.57 vs FRA:TIV: 4.75

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

Thor Industries Interest Coverage Historical Data

The historical data trend for Thor Industries'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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Thor Industries Annual Data

Trend

Jul14

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Interest Coverage

5.31

3.60

9.71

17.01

6.01

Thor Industries Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Interest Coverage																1.52	7.11	6.60	5.33	0.65

Competitive Comparison

For the Recreational Vehicles subindustry, Thor Industries'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.

Thor Industries Interest Coverage Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Thor Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Thor Industries's Interest Coverage falls into.

Thor Industries 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.

Thor Industries's Interest Coverage for the fiscal year that ended in Jul. 2023 is calculated as

Here, for the fiscal year that ended in Jul. 2023, Thor Industries's Interest Expense was €-88 Mil. Its Operating Income was €529 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,167 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jul. 2023 )	/	Interest Expense (A: Jul. 2023 )
	=	-1	*	529.284	/	-88.092
	=	6.01

Thor Industries's Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the three months ended in Jan. 2024, Thor Industries's Interest Expense was €-26 Mil. Its Operating Income was €17 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,276 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jan. 2024 )	/	Interest Expense (Q: Jan. 2024 )
	=	-1	*	16.761	/	-25.914
	=	0.65

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

Thor Industries (FRA:TIV) 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 .

Thor Industries Interest Coverage Related Terms

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

Thor Industries (FRA:TIV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Thor Industries Inc (FRA:TIV) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

THO:USA

Address

601 East Beardsley Avenue, Elkhart, IN, USA, 46514-3305

Website

https://www.thorindustries.com

Based in Elkhart, Indiana, Thor Industries manufactures Class A, Class B, and Class C motor homes along with travel trailers and fifth wheel towables across over 30 brands. Through the acquisition of Erwin Hymer in 2019, the company expanded its geographic footprint and now produces various motorized and towable recreational vehicles for Europe, including motorcaravans, campervans, urban vehicles, caravans, and other RV-related products and services. The company has also begun generating revenue through aftermarket component parts through the acquisition of Airxcel in 2021, however, this is still a nascent part of the business as it accounts for less than 10% of total sales. In fiscal 2023, the company wholesaled 187,015 units and generated over $11.1 billion in revenue.

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