Advanced Energy Industries Inc (AEIS)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 50,845 | 29,016 | 74,352 | 93,791 | 133,608 | 175,506 | 219,942 | 240,661 | 245,227 | 225,605 | 176,281 | 165,798 | 166,207 | 189,584 | 221,030 | 220,109 | 206,191 | 175,302 | 126,149 | 96,648 |
| Interest expense (ttm) | US$ in thousands | 25,105 | 27,659 | 25,106 | 21,033 | 15,287 | 23,662 | 27,829 | 28,676 | 30,657 | 15,156 | 7,164 | 3,434 | 72 | 0 | 0 | 0 | 0 | 2,489 | 3,297 | 3,355 |
| Interest coverage | 2.03 | 1.05 | 2.96 | 4.46 | 8.74 | 7.42 | 7.90 | 8.39 | 8.00 | 14.89 | 24.61 | 48.28 | 2,308.43 | — | — | — | — | 70.43 | 38.26 | 28.81 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $50,845K ÷ $25,105K
= 2.03
Based on the provided data, Advanced Energy Industries Inc's interest coverage ratio has shown some fluctuations over the years.
The interest coverage ratio measures the company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates that the company is more capable of covering its interest expenses from its operating income.
From March 2020 to December 2021, the interest coverage ratio of Advanced Energy Industries Inc improved significantly, reaching a peak of 2,308.43 by December 2021. This implies the company had a substantial ability to pay its interest expenses during this period.
However, from March 2022 onwards, the interest coverage ratio started to decrease, indicating a potential decline in the company's ability to cover its interest payments. The ratio fluctuated between 4.46 to 1.05 from March 2022 to September 2024, suggesting some volatility in the company's financial position.
Overall, while the interest coverage ratio of Advanced Energy Industries Inc has shown both strong performance and some decline in recent periods, further monitoring of the trend is advisable to assess the company's ability to meet its interest obligations in the future.
Peer comparison
Dec 31, 2024