CF Industries Holdings Inc (CF)
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 | 1,820,000 | 1,803,000 | 1,706,000 | 1,794,000 | 2,341,000 | 3,144,000 | 3,580,000 | 4,628,000 | 5,411,000 | 5,276,000 | 4,446,000 | 3,116,000 | 1,714,000 | 735,000 | 872,000 | 719,000 | 633,000 | 665,000 | 789,000 | 928,000 |
| Interest expense (ttm) | US$ in thousands | 139,000 | 139,000 | 144,000 | 145,000 | 148,000 | 140,000 | 147,000 | 193,000 | 396,000 | 413,000 | 413,000 | 375,000 | 182,000 | 176,000 | 178,000 | 183,000 | 179,000 | 196,000 | 211,000 | 221,000 |
| Interest coverage | 13.09 | 12.97 | 11.85 | 12.37 | 15.82 | 22.46 | 24.35 | 23.98 | 13.66 | 12.77 | 10.77 | 8.31 | 9.42 | 4.18 | 4.90 | 3.93 | 3.54 | 3.39 | 3.74 | 4.20 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,820,000K ÷ $139,000K
= 13.09
CF Industries Holdings Inc's interest coverage ratio has shown significant fluctuations over the analyzed period from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt.
Starting from 4.20 on March 31, 2020, the interest coverage ratio declined gradually to 3.39 on September 30, 2020. This downward trend continued until December 31, 2020, reaching 3.54.
However, from March 31, 2021, there was a notable improvement in the interest coverage ratio, which increased to 3.93 and then further to 4.90 on June 30, 2021. This positive momentum continued through the following quarters, with the ratio reaching its peak at 24.35 on June 30, 2023.
Subsequently, the interest coverage ratio experienced a downward trend, dropping to 12.37 on March 31, 2024, and further to 11.85 by June 30, 2024. The ratio showed a slight recovery to 13.09 by December 31, 2024.
Overall, the interest coverage ratio of CF Industries Holdings Inc has exhibited volatility over the analyzed periods, with both improvements and declines. This underscores the importance of monitoring the company's ability to cover its interest expenses and manage its debt levels effectively.
Peer comparison
Dec 31, 2024