Balchem Corporation (BCPC)
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 | 159,193 | 154,163 | 144,174 | 141,258 | 145,186 | 145,702 | 144,590 | 135,263 | 127,502 | 122,605 | 119,120 | 115,444 | 111,147 | 105,864 | 102,866 | 102,351 | 102,553 | 106,146 | 105,446 | 106,373 |
| Interest expense (ttm) | US$ in thousands | 402 | 409 | 460 | 458 | 460 | 454 | 406 | 409 | 411 | 413 | 485 | 452 | 419 | 386 | 281 | 282 | 282 | -5,053 | -3,322 | -1,125 |
| Interest coverage | 396.00 | 376.93 | 313.42 | 308.42 | 315.62 | 320.93 | 356.13 | 330.72 | 310.22 | 296.86 | 245.61 | 255.41 | 265.27 | 274.26 | 366.07 | 362.95 | 363.66 | — | — | — |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $159,193K ÷ $402K
= 396.00
Balchem Corp.'s interest coverage ratio has fluctuated over the past eight quarters, ranging from a low of 6.87 to a high of 59.43. The interest coverage ratio indicates the company's ability to meet its interest obligations from its operating income. A higher ratio implies a stronger ability to cover interest expenses with operating earnings.
The trend in Balchem Corp.'s interest coverage ratio shows a significant decline from the exceptionally high levels seen in Q2 and Q3 of 2022. This decrease may be indicative of changes in the company's operating performance or debt levels. The lower interest coverage ratios in Q4 2022 to Q3 2023 could potentially raise concerns about the company's ability to comfortably meet its interest payments from operating profits.
Overall, additional analysis would be necessary to determine the specific factors driving these fluctuations in interest coverage and to assess the company's financial health and risk profile accurately.
Peer comparison
Dec 31, 2023