BWX Technologies Inc (BWXT)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 385,552 | 390,323 | 384,007 | 375,278 | 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 |
| Interest expense (ttm) | US$ in thousands | 39,475 | 42,026 | 44,294 | 45,812 | 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 |
| Interest coverage | 9.77 | 9.29 | 8.67 | 8.19 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $385,552K ÷ $39,475K
= 9.77
BWX Technologies Inc's interest coverage ratio measures the company's ability to pay its interest expenses on outstanding debt with its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
Based on the provided data, BWX Technologies Inc's interest coverage ratio has shown some fluctuations over the past few years. The ratio ranged from a low of 7.27 on September 30, 2023, to a high of 13.63 on September 30, 2022. Notably, the ratio generally remained above 10 in most periods, which suggests the company has consistently generated sufficient operating income to cover its interest expenses.
However, there was a slight downward trend in the interest coverage ratio towards the end of the period, with the ratio declining from 9.77 on December 31, 2024, to 8.19 on March 31, 2024. This trend may indicate a potential decrease in the company's ability to cover its interest payments with its operating income.
Overall, while the interest coverage ratio for BWX Technologies Inc has shown some variability, the company has generally maintained a healthy level of coverage throughout the period. Investors and creditors may continue to monitor this ratio to assess the company's ability to service its debt obligations effectively.
Peer comparison
Dec 31, 2024