Belden Inc (BDC)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 317,518 | 363,334 | 263,676 | 150,114 | 207,207 |
| Interest expense | US$ in thousands | 330 | 258 | 14 | 17 | 22 |
| Interest coverage | 962.18 | 1,408.27 | 18,834.00 | 8,830.24 | 9,418.50 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $317,518K ÷ $330K
= 962.18
Belden Inc's interest coverage has shown a positive trend over the past five years, indicating the company's improving ability to meet its interest payment obligations. The interest coverage ratio increased from 3.71 in 2019 to 9.08 in 2023, showcasing a steady improvement in the company's ability to cover its interest expenses with operating earnings.
This trend suggests that Belden Inc has been generating healthier operating profits relative to its interest expenses, signifying a lower risk of default on its debt obligations. The consistent increase in the interest coverage ratio demonstrates the company's strengthened financial position and reduced financial risk over the years.
Overall, the upward trajectory of Belden Inc's interest coverage ratio reflects a positive financial performance and sound debt management by the company.
Peer comparison
Dec 31, 2023