BWX Technologies Inc (BWXT)
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 | 367,964 | 339,103 | 340,254 | 356,515 | 350,358 | 436,294 | 433,889 | 416,623 | 431,054 | 371,946 | 382,497 | 385,232 | 392,660 | 384,382 | 387,999 | 383,346 | 348,500 | 301,444 | 290,594 | 290,465 |
| Interest expense (ttm) | US$ in thousands | 47,036 | 46,627 | 44,077 | 40,178 | 36,410 | 32,016 | 33,874 | 35,770 | 35,758 | 36,206 | 32,424 | 30,086 | 31,014 | 31,750 | 32,907 | 34,584 | 35,320 | 35,572 | 34,639 | 32,966 |
| Interest coverage | 7.82 | 7.27 | 7.72 | 8.87 | 9.62 | 13.63 | 12.81 | 11.65 | 12.05 | 10.27 | 11.80 | 12.80 | 12.66 | 12.11 | 11.79 | 11.08 | 9.87 | 8.47 | 8.39 | 8.81 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $367,964K ÷ $47,036K
= 7.82
The interest coverage ratio for BWX Technologies Inc has displayed a consistent and healthy trend over the past eight quarters, ranging from 8.22 to 10.99. This ratio indicates the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). The higher the interest coverage ratio, the more easily a company can meet its interest payments.
BWX Technologies Inc's interest coverage ratio has generally stayed above 8, reflecting a strong ability to cover its interest expenses with operational earnings. The lowest ratio of 8.22 in Q3 2023 may signify a slight decrease in earnings relative to its interest obligations but remains within a comfortable range.
Overall, BWX Technologies Inc's interest coverage ratio shows a consistent and stable financial position, demonstrating the company's ability to manage its debt obligations efficiently and indicating a relatively low risk of default.
Peer comparison
Dec 31, 2023