Embecta Corp (EMBC)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	166,800	166,400	161,800	178,200	221,500	103,700	149,500	192,700	220,500
Interest expense (ttm)	US$ in thousands	6,900	8,800	8,800	8,800	8,800	6,100	1,500	4,800	11,600
Interest coverage		24.17	18.91	18.39	20.25	25.17	17.00	99.67	40.15	19.01

September 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $166,800K ÷ $6,900K
= 24.17

Embecta Corp's interest coverage ratio has shown some variability over the past few quarters. The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.

Looking at the data, we can see that Embecta Corp's interest coverage ratio ranged from a high of 99.67 in March 2023 to a low of 17.00 in June 2023. This significant fluctuation may suggest some level of inconsistency in the company's ability to cover its interest payments.

In the most recent quarter ending in September 2024, Embecta Corp's interest coverage ratio stood at 24.17, indicating that the company generated 24.17 times more operating income than the interest expenses it incurred during the period. This suggests a healthy ability to meet interest payments based on current performance.

Overall, while there have been fluctuations in Embecta Corp's interest coverage ratio in recent quarters, the company's current ratio of 24.17 indicates a strong ability to cover its interest payments. It would be important for stakeholders to monitor future trends in this ratio to assess the company's financial stability and debt servicing capabilities.