Church & Dwight Company Inc (CHD)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 851,300 | 1,078,300 | 612,900 | 1,086,200 | 1,034,800 |
| Interest expense | US$ in thousands | 95,000 | 110,900 | 89,600 | 54,500 | 61,000 |
| Interest coverage | 8.96 | 9.72 | 6.84 | 19.93 | 16.96 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $851,300K ÷ $95,000K
= 8.96
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. Looking at the data provided for Church & Dwight Company Inc, we observe fluctuations in the interest coverage ratio over the years.
As of December 31, 2020, the interest coverage ratio stood at 16.96, indicating a strong ability to cover interest expenses with operating income. This was further bolstered by a higher ratio of 19.93 on December 31, 2021, suggesting improved financial health and decreased risk of default.
However, there was a notable decline in the interest coverage ratio to 6.84 on December 31, 2022, which may suggest increased financial risk or a higher burden of interest expenses relative to operating income. The ratio improved slightly to 9.72 on December 31, 2023, but it remained below the levels seen in the previous years.
Lastly, the interest coverage ratio stood at 8.96 on December 31, 2024, showing a moderate improvement from the previous year but still below the levels observed in the earlier years. Overall, the trend in the interest coverage ratio for Church & Dwight Company Inc reflects varying degrees of ability to cover interest expenses, with some fluctuations indicating potential shifts in the company's financial leverage and profitability.
Peer comparison
Dec 31, 2024