Carlisle Companies Incorporated (CSL)
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 | 1,156,700 | 1,189,900 | 1,152,700 | 1,046,100 | 947,400 | 940,300 | 987,400 | 1,130,300 | 1,281,500 | 1,218,400 | 1,034,200 | 758,600 | 567,300 | 502,800 | 497,400 | 487,800 | 504,200 | 526,600 | 559,900 | 645,200 |
| Interest expense (ttm) | US$ in thousands | 73,300 | 74,600 | 75,400 | 75,400 | 75,600 | 75,300 | 78,500 | 82,100 | 85,900 | 89,700 | 86,900 | 83,700 | 80,300 | 77,100 | 76,300 | 76,900 | 76,600 | 74,200 | 71,900 | 66,800 |
| Interest coverage | 15.78 | 15.95 | 15.29 | 13.87 | 12.53 | 12.49 | 12.58 | 13.77 | 14.92 | 13.58 | 11.90 | 9.06 | 7.06 | 6.52 | 6.52 | 6.34 | 6.58 | 7.10 | 7.79 | 9.66 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,156,700K ÷ $73,300K
= 15.78
The interest coverage ratio for Carlisle Companies Incorporated has shown a general trend of improvement over the recent quarters. The company's ability to cover its interest expenses has increased from 9.66 in March 2020 to a peak of 15.95 in September 2024. This indicates that Carlisle is in a stronger position to meet its interest obligations from its operating income.
The interest coverage ratio dipped slightly in the first quarter of 2023 but recovered quickly in the subsequent periods. The peak in coverage ratio in September 2024 suggests that Carlisle is efficiently managing its debt obligations and generating sufficient earnings to comfortably cover its interest expenses.
Overall, the increasing trend in the interest coverage ratio reflects positively on Carlisle's financial health and indicates a reduced risk of default due to inability to meet interest payments. Investors and creditors may view this trend positively as it demonstrates the company's solid financial performance and ability to service its debt effectively.
Peer comparison
Dec 31, 2024