Allegion PLC (ALLE)
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 | 800,800 | 773,100 | 742,700 | 714,800 | 710,300 | 714,400 | 678,200 | 642,500 | 590,400 | 564,200 | 560,500 | 558,600 | 574,200 | 554,600 | 574,100 | 526,400 | 416,500 | 409,400 | 402,900 | 447,000 |
| Interest expense (ttm) | US$ in thousands | 102,000 | 99,700 | 93,800 | 92,400 | 93,100 | 93,900 | 94,100 | 87,600 | 75,900 | 65,400 | 54,600 | 49,800 | 50,200 | 49,300 | 49,900 | 50,500 | 51,100 | 52,100 | 54,800 | 55,200 |
| Interest coverage | 7.85 | 7.75 | 7.92 | 7.74 | 7.63 | 7.61 | 7.21 | 7.33 | 7.78 | 8.63 | 10.27 | 11.22 | 11.44 | 11.25 | 11.51 | 10.42 | 8.15 | 7.86 | 7.35 | 8.10 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $800,800K ÷ $102,000K
= 7.85
The interest coverage ratio for Allegion PLC has exhibited a generally stable trend over the reviewed periods from March 31, 2020, through December 31, 2024. The ratio stood at 8.10 as of March 31, 2020, and fluctuated between 7.21 and 11.51 throughout the period, reaching its peak in June 30, 2021. This indicates that Allegion has been able to comfortably cover its interest payments with its earnings, with the ratios consistently above 1. A higher interest coverage ratio suggests a stronger ability to meet interest obligations, reflecting positively on the company's financial health and risk of default. Despite some minor fluctuations, the interest coverage ratio for Allegion PLC remains relatively healthy and stable, indicating a consistent ability to meet its interest payments.