Crane Company (CR)
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 | 365,700 | 289,700 | 281,500 | 524,100 | 257,100 |
| Interest expense | US$ in thousands | 27,200 | 22,700 | 52,200 | 46,900 | 55,300 |
| Interest coverage | 13.44 | 12.76 | 5.39 | 11.17 | 4.65 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $365,700K ÷ $27,200K
= 13.44
Based on the data provided for Crane Company's interest coverage ratio over the five-year period from December 31, 2020, to December 31, 2024, the company has shown fluctuations in its ability to cover interest expenses with its earnings before interest and taxes (EBIT).
In December 2020, the interest coverage ratio was 4.65, indicating that Crane Company's EBIT was able to cover its interest expenses approximately 4.65 times. This suggests a moderate ability to meet interest obligations.
By the end of December 2021, the interest coverage ratio significantly improved to 11.17, reflecting a substantial increase in the company's ability to cover interest payments with its operating income.
In December 2022, the interest coverage ratio declined to 5.39, indicating a decrease in the company's ability to cover interest expenses compared to the previous year. This could signal potential challenges in meeting interest payments from operating earnings.
However, by December 2023, the interest coverage ratio increased again to 12.76, showing a strong ability to meet interest obligations with operating profits.
In the most recent year, December 2024, the interest coverage ratio further improved to 13.44, indicating a very healthy financial position with ample earnings to cover interest costs.
Overall, Crane Company's interest coverage ratio has exhibited variability over the five-year period, with notable improvements in certain years. Investors and creditors may view the company's fluctuating interest coverage ratios as an important factor to consider when evaluating its financial stability and ability to service debt obligations.
Peer comparison
Dec 31, 2024