DXP Enterprises Inc (DXPE)
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 | 148,898 | 140,798 | 135,972 | 135,307 | 119,152 | 111,622 | 101,974 | 89,333 | 95,412 | 78,671 | 65,332 | 55,097 | 40,737 | 28,199 | -24,602 | -32,828 | -27,742 | -15,883 | 47,025 | 63,067 |
| Interest expense (ttm) | US$ in thousands | 63,927 | 63,722 | 60,690 | 57,169 | 53,150 | 47,597 | 41,746 | 35,498 | 29,135 | 22,855 | 21,286 | 21,008 | 21,089 | 24,356 | 22,844 | 21,437 | 20,571 | 16,646 | 17,880 | 18,835 |
| Interest coverage | 2.33 | 2.21 | 2.24 | 2.37 | 2.24 | 2.35 | 2.44 | 2.52 | 3.27 | 3.44 | 3.07 | 2.62 | 1.93 | 1.16 | -1.08 | -1.53 | -1.35 | -0.95 | 2.63 | 3.35 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $148,898K ÷ $63,927K
= 2.33
DXP Enterprises Inc's interest coverage ratio has shown fluctuations over the past few years, ranging from negative values to positive values. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses, which can be a cause for concern.
From September 2020 to March 2021, the interest coverage ratio was consistently negative, indicating that DXP Enterprises Inc was struggling to cover its interest expenses with its operating income during that period. However, starting from June 2021, the interest coverage ratio turned positive and has been gradually increasing since then, reaching a value of 2.33 as of December 31, 2024.
Overall, the upward trend in the interest coverage ratio from 2021 to 2024 suggests an improvement in DXP Enterprises Inc's ability to fulfill its interest obligations. It is essential for investors and stakeholders to monitor this ratio to ensure the company's financial health and ability to service its debt obligations.
Peer comparison
Dec 31, 2024