Astec Industries Inc (ASTE)
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 | 51,500 | 35,600 | 42,400 | 20,500 | 7,400 | -8,300 | -4,000 | 10,700 | 14,800 | 45,300 | 39,400 | 40,100 | 46,100 | 481 | 3,880 | 23,472 | 26,701 | -15,956 | -12,410 | -92,311 |
| Interest expense (ttm) | US$ in thousands | 8,900 | 7,300 | 5,500 | 4,100 | 2,500 | 2,100 | 1,700 | 1,300 | 1,100 | 1,100 | 900 | 900 | 700 | 301 | 468 | 752 | 1,400 | 1,811 | 1,814 | 1,498 |
| Interest coverage | 5.79 | 4.88 | 7.71 | 5.00 | 2.96 | -3.95 | -2.35 | 8.23 | 13.45 | 41.18 | 43.78 | 44.56 | 65.86 | 1.60 | 8.29 | 31.21 | 19.07 | -8.81 | -6.84 | -61.62 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $51,500K ÷ $8,900K
= 5.79
Interest coverage is a key financial ratio that provides insight into a company's ability to meet its interest obligations on outstanding debt. The interest coverage ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses for a specific period.
Analyzing Astec Industries Inc.'s interest coverage over the past eight quarters, we can see some fluctuations in the ratio. The interest coverage ratio has been relatively high and stable in Q4 2022 and Q1 2023, indicating that the company's earnings were sufficient to cover its interest expenses comfortably.
However, there was a significant decrease in Q2 2022, with the ratio dropping to 7.18, which could indicate that the company's earnings were less able to cover its interest expenses during that period. This was followed by a significant improvement in Q3 2022 and subsequent quarters, with the interest coverage ratio reaching 12.92 in Q2 2023, reflecting a strong ability to meet interest payments.
Overall, Astec Industries Inc.'s interest coverage ratio has shown fluctuations over the past eight quarters, but the recent trend indicates an improving ability to cover interest expenses. Investors and creditors may view this positively as it suggests a strengthening financial position regarding the company's capacity to service its debt obligations.
Peer comparison
Dec 31, 2023