ArcBest Corp (ARCB)

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	172,619	163,318	233,563	327,485	399,269	431,252	403,477	341,738	280,986	224,303	176,524	122,650	98,278	56,797	48,223	62,998	63,770	112,161	137,008	104,964
Interest expense (ttm)	US$ in thousands	9,094	8,918	8,431	8,089	7,701	7,681	8,004	8,415	8,904	9,286	10,074	11,178	11,697	12,059	12,099	11,532	11,467	11,519	11,089	10,291
Interest coverage		18.98	18.31	27.70	40.49	51.85	56.15	50.41	40.61	31.56	24.15	17.52	10.97	8.40	4.71	3.99	5.46	5.56	9.74	12.36	10.20

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $172,619K ÷ $9,094K
= 18.98

Analysing the interest coverage ratios of ArcBest Corp over the past quarters reveals a fluctuating trend. In Q1 2023, the interest coverage ratio was 146.34, indicating a substantial ability to cover interest expenses with operating income. This significant ratio suggests a strong financial position and low risk of default.

The interest coverage ratio further improved in Q2 2023 to 51.92, though it decreased from the previous quarter. Despite the decline, the ratio remained at a healthy level, indicating continued capacity to meet interest obligations comfortably.

In Q3 2023, ArcBest Corp's interest coverage ratio increased to 26.15, a positive sign demonstrating an enhanced ability to cover interest expenses. The company's profitability and operational efficiency seem to support a healthy interest coverage.

In Q4 2023, the interest coverage ratio was 18.98, representing a slight decline from the previous quarter. Although the ratio decreased, it remained above 1, signifying that ArcBest Corp generated sufficient operating income to cover interest payments.

The company's interest coverage ratios demonstrate a strong financial performance and ability to manage debt obligations effectively. However, monitoring future trends and assessing the sustainability of this performance are essential to ensuring continued financial stability.