Curtiss-Wright Corporation (CW)
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 | 556,891 | 569,865 | 554,378 | 537,650 | 514,463 | 505,332 | 477,119 | 459,050 | 436,175 | 386,018 | 375,985 | 368,348 | 394,750 | 365,612 | 354,306 | 310,527 | 298,596 | 346,018 | 367,952 | 428,264 |
| Interest expense (ttm) | US$ in thousands | 44,869 | 44,155 | 45,243 | 49,019 | 51,393 | 54,097 | 55,598 | 50,394 | 46,980 | 43,461 | 39,419 | 39,811 | 40,240 | 40,580 | 39,680 | 38,015 | 35,545 | 33,223 | 32,119 | 31,564 |
| Interest coverage | 12.41 | 12.91 | 12.25 | 10.97 | 10.01 | 9.34 | 8.58 | 9.11 | 9.28 | 8.88 | 9.54 | 9.25 | 9.81 | 9.01 | 8.93 | 8.17 | 8.40 | 10.42 | 11.46 | 13.57 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $556,891K ÷ $44,869K
= 12.41
The interest coverage ratio measures a company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that the company is more capable of servicing its debt.
Looking at Curtiss-Wright Corporation's interest coverage ratio over the past few quarters, we observe a gradual decline. As of December 31, 2024, the interest coverage ratio stands at 12.41, which indicates that the company generated 12.41 times more EBIT than the interest expenses incurred during that quarter.
While the company's interest coverage ratio has fluctuated over the quarters, it has generally remained above 8, reflecting a healthy ability to cover its interest payments. It is worth noting that a ratio above 1 indicates that the company is generating enough income to cover its interest obligations.
However, the recent decline in the interest coverage ratio from a high of 13.57 on March 31, 2020, to 12.41 on December 31, 2024, suggests that the company may be experiencing a slight decrease in its ability to cover interest expenses with its operating profits. This trend could indicate a need for closer monitoring of the company's debt levels and potential strategies to improve profitability to maintain a comfortable interest coverage ratio in the future.
Peer comparison
Dec 31, 2024