Benchmark Electronics Inc (BHE)

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	113,095	113,760	106,515	103,828	97,236	83,880	69,473	57,299	53,879	47,073	43,909	31,053	25,657	4,873	6,017	21,372	33,933	59,903	63,222	65,059
Interest expense (ttm)	US$ in thousands	31,875	28,649	23,667	17,594	12,894	9,685	8,179	8,073	8,472	8,390	8,539	8,811	8,364	7,839	7,390	6,757	6,664	6,944	9,079	9,654
Interest coverage		3.55	3.97	4.50	5.90	7.54	8.66	8.49	7.10	6.36	5.61	5.14	3.52	3.07	0.62	0.81	3.16	5.09	8.63	6.96	6.74

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $113,095K ÷ $31,875K
= 3.55

The interest coverage ratio for Benchmark Electronics Inc. has shown a decreasing trend over the quarters, starting from 10.75 in Q2 2022 and reaching 4.61 in Q4 2023. This indicates that the company's ability to meet its interest obligations with its earnings has weakened over time.

A high interest coverage ratio is typically considered favorable as it suggests a company is easily able to cover its interest expenses with its operating income. However, the decreasing trend seen in Benchmark Electronics Inc.'s interest coverage ratio may raise concerns regarding its financial health and ability to service its debt obligations.

The declining interest coverage ratio could be attributed to various factors such as increased interest expenses, a decrease in operating income, or a combination of both. Investors and stakeholders may closely monitor this trend as a continued decline in the interest coverage ratio could signal potential financial distress for the company.