Belden Inc (BDC)
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 | 317,518 | 351,792 | 386,011 | 375,350 | 363,334 | 354,747 | 299,836 | 286,249 | 263,676 | 261,183 | 222,573 | 171,354 | 150,114 | 126,365 | 147,780 | 189,425 | 207,207 | 235,071 | 306,689 | 316,620 |
| Interest expense (ttm) | US$ in thousands | 8,451 | 8,418 | 8,408 | 8,453 | 258 | 197 | 137 | 17 | 14 | 14 | 13 | 15 | 17 | 19 | 21 | 23 | 22 | 15,037 | 29,503 | 44,585 |
| Interest coverage | 37.57 | 41.79 | 45.91 | 44.40 | 1,408.27 | 1,800.75 | 2,188.58 | 16,838.18 | 18,834.00 | 18,655.93 | 17,121.00 | 11,423.60 | 8,830.24 | 6,650.79 | 7,037.14 | 8,235.87 | 9,418.50 | 15.63 | 10.40 | 7.10 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $317,518K ÷ $8,451K
= 37.57
Interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates that the company is generating sufficient earnings to cover its interest expenses.
Looking at Belden Inc's interest coverage ratio over the past eight quarters, we can see a positive trend of improvement. The interest coverage ratio has been steadily increasing from Q1 2022 to Q4 2023, indicating that the company's earnings have been consistently covering its interest expenses with a comfortable margin.
In Q4 2023, Belden Inc's interest coverage ratio was 9.08, which means that the company's earnings were approximately 9 times its interest expenses for that quarter. This is a strong indication of the company's financial health and ability to service its debt obligations.
Overall, the improving trend in Belden Inc's interest coverage ratio suggests that the company is effectively managing its debt and generating sufficient income to meet its interest payments. Investors and creditors may view this positively as it indicates a lower risk of default due to interest payment difficulties.
Peer comparison
Dec 31, 2023