Ecolab Inc (ECL)
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 | ||
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Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,083,700 | 1,856,200 | 1,738,100 | 1,681,300 | 1,588,000 | 1,576,500 | 1,579,100 | 1,585,500 | 1,626,400 | 1,654,800 | 1,589,600 | 1,333,000 | 1,395,700 | 1,497,800 | 1,635,400 | 1,907,800 | 1,845,200 | 1,908,900 | 1,876,100 | 1,906,300 |
Interest expense (ttm) | US$ in thousands | 348,900 | 327,100 | 302,500 | 277,100 | 252,100 | 225,900 | 237,500 | 231,900 | 230,600 | 235,200 | 295,900 | 306,000 | 304,700 | 304,300 | 218,200 | 210,900 | 214,500 | 219,500 | 224,900 | 230,600 |
Interest coverage | 5.97 | 5.67 | 5.75 | 6.07 | 6.30 | 6.98 | 6.65 | 6.84 | 7.05 | 7.04 | 5.37 | 4.36 | 4.58 | 4.92 | 7.49 | 9.05 | 8.60 | 8.70 | 8.34 | 8.27 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,083,700K ÷ $348,900K
= 5.97
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
Based on the data provided for Ecolab, Inc., we can see that the interest coverage ratio has been relatively stable over the past eight quarters, ranging from a low of 6.55 to a high of 7.60. This indicates that Ecolab has consistently been able to generate sufficient operating income to cover its interest expenses.
With an average interest coverage ratio of approximately 7.03 over the eight quarters, Ecolab appears to have a solid ability to meet its interest obligations. Investors and creditors may view this as a positive sign of the company's financial health and ability to manage its debt effectively.
Overall, Ecolab's interest coverage ratio suggests that the company has a comfortable margin of safety when it comes to servicing its debt, which is a favorable indicator for its financial stability.
Peer comparison
Dec 31, 2023