Crane NXT Co (CXT)
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 | 274,200 | 274,000 | 278,000 | 280,200 | 374,400 | 431,100 | 328,900 | 627,400 | 614,000 | 575,200 | 738,700 | 517,200 | 530,500 | 507,400 | 453,500 | 339,300 | 281,300 | 73,600 | 90,800 | 187,900 |
| Interest expense (ttm) | US$ in thousands | 47,800 | 46,500 | 45,900 | 47,600 | 54,700 | 60,100 | 60,800 | 60,800 | 54,900 | 49,600 | 47,100 | 44,400 | 46,900 | 50,000 | 53,400 | 56,400 | 55,300 | 53,100 | 50,400 | 47,400 |
| Interest coverage | 5.74 | 5.89 | 6.06 | 5.89 | 6.84 | 7.17 | 5.41 | 10.32 | 11.18 | 11.60 | 15.68 | 11.65 | 11.31 | 10.15 | 8.49 | 6.02 | 5.09 | 1.39 | 1.80 | 3.96 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $274,200K ÷ $47,800K
= 5.74
Crane NXT Co's interest coverage ratio has shown fluctuations over the past few years, indicating varying levels of the company's ability to meet its interest payment obligations. The interest coverage ratio compares the company's earnings before interest and taxes (EBIT) to its interest expenses, reflecting the proportion of earnings available to cover interest payments.
From March 31, 2020, where the interest coverage ratio stood at 3.96, the ratio decreased to 1.80 by June 30, 2020, and further decreased to 1.39 by September 30, 2020. This downward trend may signal a potential strain on Crane NXT Co's ability to cover its interest expenses with its operating income during that period.
However, starting from December 31, 2020, the interest coverage ratio demonstrated an upward trajectory, reaching its peak of 15.68 on June 30, 2022. This increase indicates an improvement in Crane NXT Co's ability to cover its interest costs with its operating earnings, reflecting a healthier financial position during that timeframe.
Subsequently, the interest coverage ratio experienced a decline, dropping to 5.74 by December 31, 2024. While still above the levels seen in the earlier years, this decrease suggests a potential reduction in the company's ability to cover its interest obligations compared to the peak observed in mid-2022.
Overall, the fluctuations in Crane NXT Co's interest coverage ratio highlight the importance of monitoring the company's earnings performance relative to its interest expenses, as changes in this ratio can provide insights into the company's financial health and ability to manage its debt obligations.
Peer comparison
Dec 31, 2024