Carlisle Companies Incorporated (CSL)
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 | 1,184,200 | 1,006,000 | 1,232,100 | 562,800 | 480,800 |
| Interest expense | US$ in thousands | 73,300 | 75,600 | 85,900 | 80,300 | 76,600 |
| Interest coverage | 16.16 | 13.31 | 14.34 | 7.01 | 6.28 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,184,200K ÷ $73,300K
= 16.16
Interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt using its operating income. In the case of Carlisle Companies Incorporated, the interest coverage has shown a positive trend over the past five years. In December 2020, the interest coverage ratio was 6.28, indicating that the company's operating income was able to cover its interest expense 6.28 times.
By December 2021, the interest coverage ratio improved to 7.01, showing a better ability to meet its interest obligations. This trend continued in 2022 with a sharp increase in the interest coverage ratio to 14.34, indicating a significantly stronger ability to cover interest payments using operating income.
In 2023, the interest coverage remained strong at 13.31, suggesting the company's operating income continued to exceed its interest expense by a healthy margin. The most recent data available for December 2024 shows a further improvement in the interest coverage ratio to 16.16, reflecting a robust financial position in terms of meeting interest obligations.
Overall, the increasing trend in Carlisle Companies' interest coverage ratio over the years highlights the company's strong financial health and ability to comfortably meet its interest payment obligations from its operating income.
Peer comparison
Dec 31, 2024