Axalta Coating Systems Ltd (AXTA)
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 | 566,900 | 506,000 | 467,900 | 435,400 | 396,500 | 396,600 | 404,700 | 506,800 | 474,200 | 508,400 | 520,500 | 260,100 | 271,700 | 250,400 | 235,000 | 454,200 | 489,000 | 503,000 | 419,800 | 398,700 |
| Interest expense (ttm) | US$ in thousands | 213,300 | 196,600 | 176,500 | 155,400 | 139,800 | 134,600 | 133,400 | 133,300 | 134,200 | 138,200 | 144,200 | 146,900 | 149,900 | 152,500 | 152,900 | 157,800 | 162,600 | 163,600 | 163,200 | 161,500 |
| Interest coverage | 2.66 | 2.57 | 2.65 | 2.80 | 2.84 | 2.95 | 3.03 | 3.80 | 3.53 | 3.68 | 3.61 | 1.77 | 1.81 | 1.64 | 1.54 | 2.88 | 3.01 | 3.07 | 2.57 | 2.47 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $566,900K ÷ $213,300K
= 2.66
Axalta Coating Systems Ltd's interest coverage ratio has shown a declining trend over the past four quarters, starting at 3.72 in Q1 2022 and decreasing to 2.75 in Q4 2023. This indicates that the company's ability to cover its interest expenses with its earnings has weakened. Despite this decline, the interest coverage ratio has generally remained above 2.5, suggesting that the company is still generating sufficient operating income to cover its interest obligations. It is important for investors and lenders to monitor this ratio closely to ensure that Axalta Coating Systems Ltd can continue meeting its interest payments comfortably in the future.
Peer comparison
Dec 31, 2023