Church & Dwight Company Inc (CHD)
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 | 851,300 | 797,000 | 1,136,200 | 1,089,800 | 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 |
| Interest expense (ttm) | US$ in thousands | 95,000 | 98,600 | 102,400 | 107,100 | 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 |
| Interest coverage | 8.96 | 8.08 | 11.10 | 10.18 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $851,300K ÷ $95,000K
= 8.96
Church & Dwight Company Inc's interest coverage ratio has shown a generally positive trend from March 31, 2020, to December 31, 2021, with values increasing steadily from 12.76 to 19.93. This indicates the company's strong ability to cover its interest obligations with its operating income.
However, starting from March 31, 2022, the interest coverage ratio began to decline, reaching a low of 5.81 by September 30, 2023. This significant drop may raise concerns about the company's ability to meet its interest payments using its earnings during this period.
Subsequently, there was some recovery in the interest coverage ratio by December 31, 2023, and it continued to improve modestly through June 30, 2024. However, it remained below the levels seen in the earlier years.
The decreasing trend in the interest coverage ratio during 2022 and 2023 suggests that Church & Dwight Company Inc may have experienced challenges in generating sufficient operating income to cover its interest expenses during those periods. This could indicate a need for the company to closely monitor its financial position and consider strategies to improve its interest coverage in the future.
Peer comparison
Dec 31, 2024