The Andersons Inc (ANDE)
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 | 70,014 | -1,639 | 12,792 | 19,864 | 90,518 | 3,882,482 | 3,837,916 | 3,778,902 | 3,783,354 | 2,508,954 | 2,504,610 | 2,457,772 | 2,423,316 | -67,246 | -50,475 | 4,923 | 28,560 | 41,638 | 40,729 | 31,022 |
| Interest expense (ttm) | US$ in thousands | 46,867 | 52,853 | 59,647 | 62,615 | 56,849 | 51,206 | 45,023 | 41,556 | 43,866 | 48,714 | 50,484 | 48,857 | 51,275 | 38,227 | 27,894 | 15,510 | 1,023 | 1,579 | 6,519 | 14,901 |
| Interest coverage | 1.49 | -0.03 | 0.21 | 0.32 | 1.59 | 75.82 | 85.24 | 90.94 | 86.25 | 51.50 | 49.61 | 50.31 | 47.26 | -1.76 | -1.81 | 0.32 | 27.92 | 26.37 | 6.25 | 2.08 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $70,014K ÷ $46,867K
= 1.49
The interest coverage ratio is a measure of a company's ability to cover its interest payments with its operating income. A higher ratio indicates a stronger ability to meet interest obligations.
Based on the data provided, Andersons Inc.'s interest coverage has fluctuated over the past eight quarters. It ranged from a high of 7.44 in Q4 2023 to a low of 3.60 in Q1 2023. Generally, the company had a relatively healthy interest coverage ratio, with all ratios above 3.0, indicating that Andersons Inc. was able to comfortably cover its interest expenses with its operating income during this period.
The decreasing trend from Q4 2022 to Q1 2023 may raise some concern as the ratio declined from 3.73 to 3.60. However, it rebounded in subsequent quarters, reaching a peak of 7.44 in Q4 2023, which could suggest that the company's ability to cover interest payments improved significantly.
Overall, while Andersons Inc.'s interest coverage ratio experienced some variability, it remained at satisfactory levels throughout the period under review, indicating that the company was effectively managing its interest obligations with its operating income.
Peer comparison
Dec 31, 2023