Air Products and Chemicals Inc (APD)

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 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 2,377,100 2,270,100 2,254,500
Interest expense (ttm) US$ in thousands 189,800 177,500 162,000 147,300 138,700 128,000 128,900 131,800 135,600 141,800 147,600 144,100 127,300 109,300 100,200 102,300 118,400 137,000 142,300 143,000
Interest coverage 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 17.35 15.95 15.77

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,077,300K ÷ $189,800K
= 16.21

The interest coverage ratio of Air Products & Chemicals Inc. has remained consistently strong over the past eight quarters, ranging from 17.81 to 22.17. This indicates that the company has generated more than enough operating income to cover its interest expenses, showcasing a healthy ability to meet its debt obligations. The increasing trend in the interest coverage ratio reflects the company's improving financial health and ability to manage its debt burden effectively. Overall, Air Products & Chemicals Inc. demonstrates a robust capacity to service its debt and handle financial obligations through its solid interest coverage performance.

Peer comparison

Dec 31, 2023

Company name
Symbol
Interest coverage
Air Products and Chemicals Inc
APD
16.21
Linde plc Ordinary Shares
LIN
40.12
Minerals Technologies Inc
MTX
2.82

See also:

Air Products and Chemicals Inc Interest Coverage (Quarterly Data)