Ametek Inc (AME)

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	1,774,501	1,749,199	1,737,115	1,704,622	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
Interest expense (ttm)	US$ in thousands	112,962	115,079	108,347	96,480	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
Interest coverage		15.71	15.20	16.03	17.67	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

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,774,501K ÷ $112,962K
= 15.71

The interest coverage ratio of Ametek Inc has shown a generally positive trend over the past few years, indicating the company's ability to meet its interest obligations comfortably. The ratio has consistently remained above 10, which is considered a healthy level and suggests that the company's operating income is more than sufficient to cover its interest expenses.

Ametek's interest coverage ratio improved from 14.14 in March 2020 to 20.64 in December 2023, indicating a strengthening financial position and risk management. However, the ratio experienced a slight decline to 15.71 by the end of December 2024. It is important to note that even with this decrease, the interest coverage ratio remains above 10, signaling that the company still has a solid ability to service its interest payments.

Overall, Ametek Inc's interest coverage ratio suggests that the company has a strong financial standing and is capable of comfortably meeting its interest obligations through its operating income.