Church & Dwight Company Inc (CHD)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,078,300 | 662,200 | 659,200 | 627,700 | 612,900 | 983,900 | 1,028,400 | 1,064,000 | 1,086,200 | 1,100,000 | 1,072,700 | 1,024,100 | 1,034,800 | 1,039,600 | 983,700 | 920,100 | 847,300 | 847,400 | 834,600 | 821,000 |
| Interest expense (ttm) | US$ in thousands | 110,900 | 113,900 | 110,400 | 101,800 | 89,600 | 72,600 | 62,300 | 57,100 | 54,500 | 55,500 | 56,000 | 58,700 | 61,000 | 65,000 | 70,000 | 72,100 | 73,600 | 75,300 | 75,800 | 77,100 |
| Interest coverage | 9.72 | 5.81 | 5.97 | 6.17 | 6.84 | 13.55 | 16.51 | 18.63 | 19.93 | 19.82 | 19.16 | 17.45 | 16.96 | 15.99 | 14.05 | 12.76 | 11.51 | 11.25 | 11.01 | 10.65 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,078,300K ÷ $110,900K
= 9.72
Church & Dwight Co., Inc.'s interest coverage ratio has exhibited some variability over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest obligations using its operating income. A higher ratio indicates a stronger ability to cover interest expenses.
In this case, the interest coverage ratio for Church & Dwight Co., Inc. ranged from a low of 5.74 in Q3 2023 to a high of 18.68 in Q1 2022. Overall, the trend shows some fluctuations, with some quarters showing stronger interest coverage than others.
A ratio above 1 indicates that the company is generating more than enough operating income to cover its interest expenses. Throughout the periods in question, Church & Dwight Co., Inc. maintained healthy interest coverage ratios above 5, which generally signifies a solid financial position.
However, the declining trend from Q1 2022 to Q3 2023 may suggest the need for closer monitoring, as lower interest coverage ratios could indicate potentially higher financial risk if the trend persists. It is important to continue monitoring the company's financial performance to ensure it maintains a comfortable margin in covering its interest obligations.
Peer comparison
Dec 31, 2023