Church & Dwight Company Inc (CHD)
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 | 1,078,300 | 612,900 | 1,086,200 | 1,034,800 | 847,300 |
| Interest expense | US$ in thousands | 110,900 | 89,600 | 54,500 | 61,000 | 73,600 |
| Interest coverage | 9.72 | 6.84 | 19.93 | 16.96 | 11.51 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,078,300K ÷ $110,900K
= 9.72
The interest coverage ratio for Church & Dwight Co., Inc. has shown variability over the past five years. The trend indicates that the company's ability to cover its interest payments from its operating income has fluctuated. The interest coverage ratio was highest in 2021, indicating a strong ability to cover interest expenses, but experienced a notable decrease in 2022 and 2023. This declining trend in recent years may suggest a potential strain on the company's ability to meet its interest obligations with its current level of operating income. It is essential for the company to closely monitor this ratio going forward to ensure it maintains a healthy financial position and does not face liquidity challenges.
Peer comparison
Dec 31, 2023