Crane NXT Co (CXT)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 309,700 | 627,100 | 625,300 | 629,400 | 635,900 | 341,700 | 412,400 | 494,200 | 548,200 | 520,300 | 459,800 | 337,900 | 281,300 | 73,600 | 90,800 | 187,900 | 211,400 | 467,000 | 491,700 | 479,500 |
| Interest expense (ttm) | US$ in thousands | 54,700 | 60,100 | 60,800 | 58,100 | 52,200 | 46,900 | 44,400 | 44,400 | 46,900 | 50,000 | 53,400 | 56,400 | 55,300 | 53,100 | 50,400 | 47,400 | 46,800 | 46,100 | 46,700 | 48,100 |
| Interest coverage | 5.66 | 10.43 | 10.28 | 10.83 | 12.18 | 7.29 | 9.29 | 11.13 | 11.69 | 10.41 | 8.61 | 5.99 | 5.09 | 1.39 | 1.80 | 3.96 | 4.52 | 10.13 | 10.53 | 9.97 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $309,700K ÷ $54,700K
= 5.66
Crane NXT Co's interest coverage ratio, which measures the company's ability to cover its interest expenses with operating income, has shown fluctuations over the past several quarters. The interest coverage ratio ranged from a low of 1.39 in March 2020 to a high of 12.18 in December 2022. Generally, a higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
The quarterly trend in Crane NXT Co's interest coverage ratio shows some variability, with the ratio experiencing peaks and troughs. Notably, there was a significant improvement in the interest coverage ratio from 2020 to 2021, but the ratio declined in the most recent quarters of 2023. It is important to further investigate the reasons behind these fluctuations and assess the company's financial stability and performance in managing its debt obligations.
Peer comparison
Dec 31, 2023