Ashland Global Holdings Inc (ASH)
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 | -27,000 | -68,000 | 55,000 | 117,000 | 172,000 | 261,000 | 311,000 | 328,000 | 333,000 | 335,000 | 268,000 | 216,000 | 191,000 | 52,000 | 55,000 | -461,000 | -461,000 | -397,000 | -402,000 | 110,000 |
| Interest expense (ttm) | US$ in thousands | 59,000 | 58,000 | 58,000 | 58,000 | 58,000 | 63,000 | 63,000 | 63,000 | 63,000 | 71,000 | 71,000 | 71,000 | 71,000 | 80,000 | 81,000 | 89,000 | 90,000 | 122,000 | 122,000 | 114,000 |
| Interest coverage | -0.46 | -1.17 | 0.95 | 2.02 | 2.97 | 4.14 | 4.94 | 5.21 | 5.29 | 4.72 | 3.77 | 3.04 | 2.69 | 0.65 | 0.68 | -5.18 | -5.12 | -3.25 | -3.30 | 0.96 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-27,000K ÷ $59,000K
= -0.46
Interest coverage measures a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates a stronger ability to cover interest expenses with operating income.
Looking at the interest coverage ratio for Ashland Global Holdings Inc over the past few quarters, we observe fluctuations. The ratio has been volatile, ranging from negative values to positive values. The company experienced a low interest coverage ratio in the first quarter of 2021, with a negative 5.18, indicating a potential inability to cover interest expenses with operating income during that period.
However, there has been improvement in the interest coverage ratio in subsequent quarters. From March 2021 onwards, the ratio has generally shown an increasing trend, reaching a positive 5.29 in September 2022. This indicates a stronger ability to cover interest expenses with operating income during these periods.
It is worth noting that the company faced challenges in covering its interest expenses in some quarters, as indicated by negative interest coverage ratios. Overall, monitoring the trend in the interest coverage ratio can provide insights into the company's financial health and ability to manage its debt obligations.
Peer comparison
Sep 30, 2024