Eastman Chemical Company (EMN)
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 | 814,000 | 710,000 | 744,000 | 804,000 | 857,000 | 1,404,000 | 1,494,000 | 1,496,000 | 1,530,000 | 1,503,000 | 1,335,000 | 957,000 | 960,000 | 869,000 | 999,000 | 1,325,000 | 1,264,000 | 1,268,000 | 1,411,000 | 1,513,000 |
| Interest expense (ttm) | US$ in thousands | 222,000 | 211,000 | 197,000 | 188,000 | 182,000 | 182,000 | 188,000 | 194,000 | 198,000 | 201,000 | 204,000 | 208,000 | 210,000 | 212,000 | 214,000 | 214,000 | 218,000 | 222,000 | 226,000 | 232,000 |
| Interest coverage | 3.67 | 3.36 | 3.78 | 4.28 | 4.71 | 7.71 | 7.95 | 7.71 | 7.73 | 7.48 | 6.54 | 4.60 | 4.57 | 4.10 | 4.67 | 6.19 | 5.80 | 5.71 | 6.24 | 6.52 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $814,000K ÷ $222,000K
= 3.67
Eastman Chemical Co's interest coverage ratio has shown a decreasing trend over the past eight quarters, starting at 7.40 in Q1 2022 and reaching its lowest point at 4.73 in Q3 2023. The ratio has ranged from 4.73 to 7.40 during this period, indicating the company's ability to cover its interest expenses with its earnings. However, a declining trend in interest coverage may raise concerns about Eastman Chemical Co's ability to meet its interest obligations in the future. Further analysis of the company's financial health and profitability trends would be needed to assess the underlying factors driving this decrease in interest coverage.
Peer comparison
Dec 31, 2023