Curtiss-Wright Corporation (CW)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 514,463 | 436,175 | 394,750 | 298,596 | 427,809 |
| Interest expense | US$ in thousands | 51,393 | 46,980 | 40,240 | 35,545 | 31,347 |
| Interest coverage | 10.01 | 9.28 | 9.81 | 8.40 | 13.65 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $514,463K ÷ $51,393K
= 10.01
Curtiss-Wright Corp.'s interest coverage ratio has exhibited stability over the past five years. The company's ability to meet its interest obligations has remained healthy, with ratios consistently above 9x. This indicates that Curtiss-Wright was generating sufficient operating income to cover its interest expenses comfortably. Although there was a slight decrease in the interest coverage ratio in 2022 compared to 2021, the overall trend reflects a strong financial position in terms of debt-servicing capability. However, it is essential to monitor this ratio in the future to ensure that the company continues to manage its debt effectively.
Peer comparison
Dec 31, 2023