Crane Company (CR)
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 | 360,300 | 363,500 | 329,800 | 295,800 | 292,300 | 339,600 | 173,500 | 479,400 | 460,400 | 401,100 | 635,500 | 414,000 | 497,800 | 503,600 | 442,800 | 350,900 | 293,000 | 95,000 | 122,700 | 197,500 |
| Interest expense (ttm) | US$ in thousands | 27,200 | 27,900 | 25,400 | 23,300 | 33,100 | 43,300 | 52,000 | 58,100 | 52,200 | 46,900 | 44,400 | 44,400 | 46,900 | 50,000 | 53,400 | 56,400 | 55,300 | 53,100 | 50,400 | 47,400 |
| Interest coverage | 13.25 | 13.03 | 12.98 | 12.70 | 8.83 | 7.84 | 3.34 | 8.25 | 8.82 | 8.55 | 14.31 | 9.32 | 10.61 | 10.07 | 8.29 | 6.22 | 5.30 | 1.79 | 2.43 | 4.17 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $360,300K ÷ $27,200K
= 13.25
Crane Company's interest coverage ratio provides insight into its ability to meet interest payment obligations with its operating income. The trend analysis of the interest coverage ratio from March 31, 2020, to December 31, 2024, shows fluctuations in the company's ability to cover interest expenses.
- The interest coverage ratio fluctuated notably throughout the period, starting at 4.17 on March 31, 2020, and reaching a peak of 14.31 on June 30, 2022.
- The ratio generally improved from March 31, 2020, to June 30, 2022, indicating Crane Company's enhanced capacity to cover interest payments with its operating income.
- However, there was a decline in the interest coverage ratio in the following periods, dropping to 3.34 on June 30, 2023, before recovering to 13.25 on December 31, 2024.
- The fluctuation in the interest coverage ratio suggests variability in the company's profitability and financial stability over the analyzed period.
- Crane Company should continue to monitor and manage its interest coverage ratio to ensure it remains at a sustainable level to meet its interest payment obligations and maintain financial health.
Peer comparison
Dec 31, 2024