Ametek Inc (AME)

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	1,688,207	1,648,678	1,604,546	1,556,254	1,511,878	1,470,161	1,422,558	1,367,940	1,303,551	1,239,916	1,169,034	1,085,958	1,168,371	1,163,224	1,189,501	1,252,454	1,158,229	1,146,293	1,115,075	1,092,006
Interest expense (ttm)	US$ in thousands	81,795	80,699	82,558	84,185	83,186	80,681	80,912	81,004	80,381	79,330	80,041	82,268	86,062	89,642	89,763	88,569	88,481	85,755	83,838	83,147
Interest coverage		20.64	20.43	19.44	18.49	18.17	18.22	17.58	16.89	16.22	15.63	14.61	13.20	13.58	12.98	13.25	14.14	13.09	13.37	13.30	13.13

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,688,207K ÷ $81,795K
= 20.64

Interest coverage is a key financial ratio that indicates a company's ability to meet its interest payments on outstanding debt obligations. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses.

Based on the data provided for Ametek Inc, the interest coverage ratio has been consistently strong and stable over the past eight quarters. The interest coverage ratios range from a low of 16.90 in Q1 2022 to a high of 20.87 in Q4 2023.

These consistently high interest coverage ratios indicate that Ametek Inc has more than sufficient earnings to cover its interest expenses, providing a buffer in case of any fluctuations in operating performance or interest rates. A higher interest coverage ratio is generally seen as a positive indicator of a company's financial health and ability to service its debt obligations.

In conclusion, the strong and stable interest coverage ratios of Ametek Inc suggest a solid financial position and the ability to meet its interest payment obligations comfortably.