The Andersons Inc (ANDE)
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 | 82,950 | 117,643 | 87,303 | 136,856 | 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 |
| Interest expense (ttm) | US$ in thousands | 31,760 | 29,595 | 29,422 | 36,764 | 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 |
| Interest coverage | 2.61 | 3.98 | 2.97 | 3.72 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $82,950K ÷ $31,760K
= 2.61
The interest coverage ratio of The Andersons Inc over the stated period demonstrates fluctuations in the company's ability to cover its interest expenses through its operating income.
From March 31, 2020, to September 30, 2021, the interest coverage ratio remained consistently negative, indicating that the company was unable to meet its interest obligations with its operating income during this period.
However, from December 31, 2021, onwards, the interest coverage ratio significantly improved, reaching levels above 50 by the end of March 2022. This notable improvement suggests that the company's operating income was more than sufficient to cover its interest expenses during this period.
Despite this improvement, the interest coverage ratio experienced a slight decline in the subsequent quarters of June 30, 2022, and September 30, 2022, before dropping sharply to 1.59 by December 31, 2022. This sudden decrease could indicate potential challenges in meeting interest payments with operating income during that period.
The interest coverage ratio recovered in the following quarters, reaching 3.98 by September 30, 2024, before decreasing slightly to 2.61 by December 31, 2024. Overall, the trend in the interest coverage ratio of The Andersons Inc shows periods of both instability and improvement, reflecting changes in the company's ability to service its debt with its earnings.
Peer comparison
Dec 31, 2024