Allegion PLC (ALLE)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 710,100 | 714,100 | 678,000 | 642,200 | 590,100 | 564,100 | 560,300 | 558,400 | 573,900 | 554,100 | 573,700 | 526,100 | 416,300 | 409,300 | 402,700 | 446,700 | 530,900 | 560,700 | 538,800 | 538,800 |
| Interest expense (ttm) | US$ in thousands | 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 | 56,000 | 56,400 | 54,800 | 54,800 |
| Interest coverage | 7.63 | 7.60 | 7.21 | 7.33 | 7.77 | 8.63 | 10.26 | 11.21 | 11.43 | 11.24 | 11.50 | 10.42 | 8.15 | 7.86 | 7.35 | 8.09 | 9.48 | 9.94 | 9.83 | 9.83 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $710,100K ÷ $93,100K
= 7.63
Allegion plc's interest coverage ratio has been relatively stable over the past eight quarters, ranging from a low of 7.45 to a high of 10.61. The interest coverage ratio measures the company's ability to meet its interest obligations with operating income. A higher ratio indicates better ability to cover interest expenses with operating income.
Allegion plc's interest coverage ratios have generally been above 7, reflecting a consistent ability to cover interest expenses comfortably. The slight fluctuations seen in the interest coverage ratio over the quarters may be attributed to varying levels of operating income relative to interest expenses. Overall, the interest coverage ratios indicate that Allegion plc has a strong ability to pay its interest obligations through its operating income.