CH Robinson Worldwide Inc (CHRW)

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	513,462	620,891	554,294	493,618	514,607	571,212	745,299	1,082,341	1,266,782	1,390,154	1,413,314	1,204,253	1,082,108	1,001,504	858,974	787,157	673,268	603,272	636,118	674,866
Interest expense (ttm)	US$ in thousands	96,632	102,882	87,348	82,707	88,872	109,748	104,972	114,108	100,017	75,939	76,629	62,731	59,817	53,452	44,255	40,969	44,937	43,688	49,403	45,807
Interest coverage		5.31	6.03	6.35	5.97	5.79	5.20	7.10	9.49	12.67	18.31	18.44	19.20	18.09	18.74	19.41	19.21	14.98	13.81	12.88	14.73

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $513,462K ÷ $96,632K
= 5.31

CH Robinson Worldwide Inc's interest coverage ratio has shown a declining trend over the years. The interest coverage ratio measures the company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates better ability to meet interest obligations.

As of December 31, 2024, the interest coverage ratio stood at 5.31, showing a decrease from the previous periods. The ratio has been on a decreasing trend since March 31, 2023, where it was at 9.49. This decline suggests that the company may be facing challenges in generating enough operating income to cover its interest expenses.

A lower interest coverage ratio could signal financial distress or increased financial risk for the company, as it may have less room to maneuver in terms of meeting its interest obligations.

It is important for investors and creditors to closely monitor CH Robinson Worldwide Inc's interest coverage ratio to assess the company's financial health and its ability to service its debt obligations in the future.