Air Products and Chemicals Inc (APD)
Interest coverage
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,723,000 | 3,193,400 | 3,238,400 | 3,077,300 | 3,028,900 | 2,880,300 | 2,846,700 | 2,930,500 | 2,884,900 | 2,907,800 | 2,829,700 | 2,775,300 | 2,703,700 | 2,560,500 | 2,477,500 | 2,492,000 | 2,474,400 | 2,513,000 | 2,556,600 | 2,475,200 |
| Interest expense (ttm) | US$ in thousands | 218,800 | 217,100 | 208,800 | 189,800 | 177,500 | 162,000 | 147,300 | 138,700 | 128,000 | 128,900 | 131,800 | 135,600 | 141,800 | 147,600 | 144,100 | 127,300 | 109,300 | 100,200 | 102,300 | 118,400 |
| Interest coverage | 21.59 | 14.71 | 15.51 | 16.21 | 17.06 | 17.78 | 19.33 | 21.13 | 22.54 | 22.56 | 21.47 | 20.47 | 19.07 | 17.35 | 17.19 | 19.58 | 22.64 | 25.08 | 24.99 | 20.91 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,723,000K ÷ $218,800K
= 21.59
The interest coverage ratio for Air Products and Chemicals Inc has shown a relatively stable and healthy trend over the past few years. The ratio has consistently remained above 15 for the past 2 years, indicating the company's ability to comfortably meet its interest obligations with its earnings.
The ratio has been consistently strong, ranging between 17 and 25, with a peak of 25.08 at Sep 30, 2020. This suggests that the company's operating income is significantly higher than its interest expenses, providing a cushion for unforeseen challenges or downturns.
Overall, the consistent high values of the interest coverage ratio indicate that Air Products and Chemicals Inc has a strong ability to service its debt obligations through its earnings, which is a positive sign for investors and creditors.
Peer comparison
Sep 30, 2024
See also:
Air Products and Chemicals Inc Interest Coverage (Quarterly Data)