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
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.