Crane NXT Co (CXT)
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 | 286,800 | 615,200 | 549,700 | 279,700 | 211,400 |
| Interest expense | US$ in thousands | 50,600 | 52,200 | 46,900 | 55,300 | 46,800 |
| Interest coverage | 5.67 | 11.79 | 11.72 | 5.06 | 4.52 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $286,800K ÷ $50,600K
= 5.67
The interest coverage ratio for Crane NXT Co has shown fluctuating trends over the past five years. In 2023, the interest coverage ratio was 5.67, indicating that the company generated 5.67 times the amount of operating income needed to cover its interest expenses for the year. This represents a decrease from the previous year's ratio of 11.79.
Comparing the interest coverage ratio for 2023 with the ratios from 2021 and 2020, we see that the company's ability to cover interest expenses has deteriorated. However, the 2023 ratio is still higher than the ratios from 2019 and 2018, showing some improvement over the long-term.
Overall, while Crane NXT Co's interest coverage ratio has fluctuated, it remains above 1, indicating that the company is generating sufficient operating income to cover its interest expenses. Monitoring this ratio over time will be important to assess the company's ongoing ability to meet its debt obligations.
Peer comparison
Dec 31, 2023