CF Industries Holdings Inc (CF)
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 | 2,230,000 | 5,397,000 | 1,729,000 | 623,000 | 1,003,000 |
| Interest expense | US$ in thousands | 150,000 | 344,000 | 184,000 | 179,000 | 237,000 |
| Interest coverage | 14.87 | 15.69 | 9.40 | 3.48 | 4.23 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,230,000K ÷ $150,000K
= 14.87
The interest coverage ratio for CF Industries Holdings Inc has shown fluctuations over the past five years. In 2019, the interest coverage was 4.29, indicating that the company generated operating profits 4.29 times greater than its interest expense. This ratio improved in 2020 to 3.76 before increasing significantly to 12.71 in 2021. The peak was observed in 2022 at 20.90, displaying a substantial strengthening of the company's ability to cover its interest payments. However, data for 2023 is unavailable, making it challenging to assess the company's current position regarding interest coverage. Overall, the trend indicates an improvement in CF Industries Holdings Inc's ability to meet its interest obligations efficiently in recent years, with notable progress made in managing its interest expense.
Peer comparison
Dec 31, 2023