Coca-Cola Consolidated Inc. (COKE)
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 | 556,563 | 607,041 | 652,757 | 627,746 | 599,879 | 471,142 | 408,007 | 340,733 | 288,598 | 353,365 | 330,596 | 320,716 | 268,171 | 177,642 | 128,957 | 99,564 | 73,030 | 52,587 | 76,476 | 50,605 |
| Interest expense (ttm) | US$ in thousands | -918 | 6,630 | 14,229 | 20,022 | 24,792 | 29,169 | 31,183 | 32,402 | 33,449 | 34,165 | 35,101 | 35,920 | 36,735 | 37,922 | 39,854 | 42,665 | 45,990 | 48,735 | 50,597 | 51,346 |
| Interest coverage | — | 91.56 | 45.88 | 31.35 | 24.20 | 16.15 | 13.08 | 10.52 | 8.63 | 10.34 | 9.42 | 8.93 | 7.30 | 4.68 | 3.24 | 2.33 | 1.59 | 1.08 | 1.51 | 0.99 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $556,563K ÷ $-918K
= —
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates a company is more capable of meeting its interest obligations.
According to the data provided for Coca-Cola Consolidated Inc, the interest coverage ratio has been improving over the quarters. In Q1 2022, the ratio was 14.69, and it steadily increased to 35.77 in Q1 2023. This upward trend continued with a significant jump to 56.40 in Q2 2023 and further improvement to 125.01 in Q3 2023.
The notable increase in the interest coverage ratio reflects the company's ability to generate sufficient operating income to comfortably cover its interest expenses. This trend signifies a positive development in Coca-Cola Consolidated Inc's financial strength and ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023