Belden Inc (BDC)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 266,460 | 317,518 | 363,334 | 263,676 | 150,114 |
| Interest expense | US$ in thousands | 38,303 | 330 | 258 | 14 | 17 |
| Interest coverage | 6.96 | 962.18 | 1,408.27 | 18,834.00 | 8,830.24 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $266,460K ÷ $38,303K
= 6.96
Based on the data provided, Belden Inc's interest coverage ratio has fluctuated significantly over the years. In December 2020, the interest coverage ratio was exceptionally high at 8,830.24, indicating that the company generated ample earnings to cover its interest expenses.
By December 2021, the interest coverage ratio increased even further to 18,834.00, reflecting a substantial improvement in the company's ability to meet its interest obligations from its operating profits.
However, there was a sharp decline in the interest coverage ratio by December 2022 to 1,408.27, which may suggest a decrease in earnings relative to its interest expenses. This significant drop could indicate increased financial risk for the company.
Subsequently, by December 2023, the interest coverage ratio further decreased to 962.18, indicating a continued challenge for Belden Inc in generating enough earnings to cover its interest payments comfortably.
The most recent data point, December 2024, shows an interest coverage ratio of 6.96, which is comparatively low. This implies a continued strain on the company's ability to meet its interest obligations from its earnings.
Overall, the fluctuating trend in Belden Inc's interest coverage ratio indicates varying levels of financial health and risk over the years, with the company experiencing both robust and challenging periods in terms of covering its interest expenses.
Peer comparison
Dec 31, 2024