Balchem Corporation (BCPC)
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 | 182,849 | 174,104 | 169,209 | 167,875 | 160,993 | 153,900 | 146,127 | 142,776 | 145,878 | 148,701 | 146,804 | 125,274 | 118,202 | 112,791 | 109,375 | 117,057 | 111,979 | 106,680 | 102,805 | 102,170 |
| Interest expense (ttm) | US$ in thousands | 16,528 | 19,000 | 21,523 | 22,446 | 22,613 | 22,443 | 19,491 | 15,288 | 10,268 | 5,714 | 2,628 | 2,276 | 2,456 | 2,719 | 3,116 | 3,468 | 4,439 | 4,819 | 5,538 | 6,066 |
| Interest coverage | 11.06 | 9.16 | 7.86 | 7.48 | 7.12 | 6.86 | 7.50 | 9.34 | 14.21 | 26.02 | 55.86 | 55.04 | 48.13 | 41.48 | 35.10 | 33.75 | 25.23 | 22.14 | 18.56 | 16.84 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $182,849K ÷ $16,528K
= 11.06
Balchem Corporation's interest coverage ratio has shown a general increasing trend from March 31, 2020, to June 30, 2022, indicating the company's improving ability to cover its interest expenses with operating income. The interest coverage ratio was relatively stable at around 55 during this period, suggesting a strong financial position.
However, starting from September 30, 2022, the interest coverage ratio began to decline, reaching a low of 6.86 on September 30, 2023. This substantial decrease may signify a potential strain on the company's ability to cover its interest payments with operating earnings during this period.
While there was a slight improvement in the interest coverage ratio in the following quarters, reaching 11.06 on December 31, 2024, it remained significantly lower compared to the earlier period of stability. This fluctuation in the interest coverage ratio from 2022 to 2024 suggests a period of financial challenges or changes in the company's financial structure that may warrant further investigation.
Peer comparison
Dec 31, 2024