Ametek Inc (AME)

Interest coverage

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before interest and tax (EBIT) US$ in thousands 1,774,500 1,707,460 1,511,880 1,303,550 1,168,370
Interest expense US$ in thousands 112,962 81,795 83,186 80,381 86,062
Interest coverage 15.71 20.87 18.17 16.22 13.58

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $1,774,500K ÷ $112,962K
= 15.71

The interest coverage ratio for Ametek Inc has shown a consistent upward trend over the past five years, indicating the company's ability to comfortably meet its interest obligations with its earnings. The ratio has increased from 13.58 in 2020 to 15.71 in 2024. This suggests that Ametek Inc has been generating a sufficient operating income to cover its interest expenses, with the ratio peaking at 20.87 in 2023. The company's strong interest coverage indicates a healthy financial position and ability to handle debt servicing requirements effectively.