BWX Technologies Inc (BWXT)
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 | 367,964 | 350,358 | 431,054 | 392,660 | 348,500 |
| Interest expense | US$ in thousands | 47,036 | 36,410 | 35,758 | 31,014 | 35,320 |
| Interest coverage | 7.82 | 9.62 | 12.05 | 12.66 | 9.87 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $367,964K ÷ $47,036K
= 7.82
The interest coverage ratio of BWX Technologies Inc has been relatively stable over the past five years. The company's ability to cover its interest expenses has remained strong, ranging from 8.60 in 2023 to 11.71 in 2020. This indicates that BWX Technologies Inc generated sufficient earnings before interest and taxes to comfortably cover its interest payments each year. A generally consistent interest coverage ratio suggests the company has maintained a healthy financial position and efficient operations, mitigating the risk of financial distress due to interest obligations. Overall, BWX Technologies Inc's interest coverage ratio reflects a sound financial management approach.
Peer comparison
Dec 31, 2023