Ametek Inc (AME)
Interest coverage
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) | US$ in thousands | 1,688,210 | 1,511,880 | 1,303,550 | 1,168,370 | 1,158,230 |
Interest expense | US$ in thousands | 81,795 | 83,186 | 80,381 | 86,062 | 88,481 |
Interest coverage | 20.64 | 18.17 | 16.22 | 13.58 | 13.09 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,688,210K ÷ $81,795K
= 20.64
Ametek Inc's interest coverage has shown steady improvement over the past five years, with the ratio increasing from 13.31 in 2019 to 20.87 in 2023. This indicates the company's ability to comfortably meet its interest obligations with its operating income. The upward trend in the interest coverage ratio suggests that Ametek Inc is becoming more financially stable and has a stronger ability to service its debt. The company's interest coverage ratio exceeding 1 indicates that it is generating sufficient operating income to cover its interest expense, providing a buffer against potential financial risks. Overall, the increasing trend in Ametek Inc's interest coverage ratio reflects positively on the company's financial health and ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023