Barnes Group Inc (B)
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 | 91,465 | 85,184 | 101,933 | 45,246 | 52,785 | 62,658 | 77,537 | 142,592 | 144,026 | 140,147 | 128,851 | 100,635 | 117,437 | 146,265 | 180,130 | 226,320 | 227,444 | 219,067 | 210,622 | 218,309 |
| Interest expense (ttm) | US$ in thousands | 58,200 | 38,963 | 19,528 | 16,341 | 14,600 | 14,015 | 14,685 | 15,835 | 16,210 | 16,464 | 16,138 | 15,561 | 15,943 | 16,667 | 18,310 | 19,811 | 20,600 | 20,619 | 19,329 | 18,063 |
| Interest coverage | 1.57 | 2.19 | 5.22 | 2.77 | 3.62 | 4.47 | 5.28 | 9.00 | 8.89 | 8.51 | 7.98 | 6.47 | 7.37 | 8.78 | 9.84 | 11.42 | 11.04 | 10.62 | 10.90 | 12.09 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $91,465K ÷ $58,200K
= 1.57
The interest coverage ratio calculates Barnes Group Inc.'s ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates a stronger ability to meet interest payments.
Looking at the trend over the past quarters, the interest coverage ratio has been declining, indicating a potential weakening ability to cover interest expenses. In Q1 2022, Barnes Group Inc. had an interest coverage ratio of 9.39, which has steadily decreased to 1.53 in Q4 2023. This downward trend suggests that the company may be facing challenges in generating sufficient operating income to cover its interest obligations.
It is essential for investors and stakeholders to closely monitor this trend, as a low interest coverage ratio can signal financial distress and difficulties in meeting debt obligations. Barnes Group Inc. may need to focus on improving its profitability and operational efficiency to strengthen its ability to cover interest expenses in the future.
Peer comparison
Dec 31, 2023