Astec Industries Inc (ASTE)
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 | 29,200 | 29,000 | 30,200 | 58,700 | 75,200 | 45,500 | 52,100 | 30,100 | 12,400 | -1,800 | 3,300 | 18,500 | 18,200 | 47,900 | 41,441 | 41,634 | 46,511 | 510 | 4,186 | 23,418 |
| Interest expense (ttm) | US$ in thousands | 10,700 | 10,900 | 10,700 | 9,600 | 8,900 | 7,300 | 5,500 | 4,100 | 2,500 | 2,100 | 1,700 | 1,300 | 1,100 | 1,100 | 1,000 | 900 | 737 | 305 | 372 | 756 |
| Interest coverage | 2.73 | 2.66 | 2.82 | 6.11 | 8.45 | 6.23 | 9.47 | 7.34 | 4.96 | -0.86 | 1.94 | 14.23 | 16.55 | 43.55 | 41.44 | 46.26 | 63.11 | 1.67 | 11.25 | 30.98 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $29,200K ÷ $10,700K
= 2.73
Interest coverage is a financial ratio that indicates a company's ability to cover its interest expenses with its operating income. Analyzing the interest coverage ratio of Astec Industries Inc over the given periods, we observe fluctuations in the company's ability to cover its interest obligations.
As of December 31, 2024, Astec Industries Inc had an interest coverage ratio of 2.73. This implies that the company generated operating income 2.73 times greater than its interest expenses, suggesting a moderate ability to service its debt obligations from operating earnings.
Looking at the trend, we note significant variability in the interest coverage ratio over the analyzed periods. The ratio peaked at 63.11 on December 31, 2020, indicating a substantial ability to meet interest payments. However, the ratio exhibited a declining trend thereafter, reaching a low of -0.86 on September 30, 2022, which raises concerns about the company's ability to cover interest expenses with operating income during this period.
In recent quarters, the interest coverage ratio has shown some improvement, hovering around 6.11 on March 31, 2024. This suggests a partial recovery in the company's ability to service its interest obligations, although it remains below the levels seen in the earlier periods.
Overall, the fluctuating nature of Astec Industries Inc's interest coverage ratio highlights the importance of monitoring the company's operating performance and debt management strategies to ensure sustainable financial health and debt repayment capacity.
Peer comparison
Dec 31, 2024