Emerson Electric Company (EMR)
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 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -316,000 | -675,000 | -530,000 | 118,000 | 1,129,000 | 1,434,000 | 1,442,000 | 1,524,000 | 1,755,000 | 1,434,000 | 1,392,000 | 1,309,000 | 1,122,000 | 1,008,000 | 802,000 | 773,000 | 497,000 | 743,000 | 878,000 | 771,000 |
| Interest expense (ttm) | US$ in thousands | 248,000 | 284,000 | 238,000 | 201,000 | 185,000 | 184,000 | 224,000 | 223,000 | 196,000 | 182,000 | 172,000 | 162,000 | 161,000 | 162,000 | 167,000 | 167,000 | 162,000 | 162,000 | 160,000 | 173,000 |
| Interest coverage | -1.27 | -2.38 | -2.23 | 0.59 | 6.10 | 7.79 | 6.44 | 6.83 | 8.95 | 7.88 | 8.09 | 8.08 | 6.97 | 6.22 | 4.80 | 4.63 | 3.07 | 4.59 | 5.49 | 4.46 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-316,000K ÷ $248,000K
= -1.27
Emerson Electric Company's interest coverage ratio has fluctuated over the past few quarters. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income. A ratio below 1 indicates the company is not generating enough operating income to cover its interest expenses.
Looking at the data provided, we can see that the interest coverage ratio for Emerson Electric Company has been mostly above 1 in recent quarters, indicating the company's ability to cover its interest expenses with its operating income. However, there are instances where the ratio falls below 1, such as in September 2024 and June 2024, which may indicate a potential concern regarding the company's ability to meet its interest obligations.
It is important to note that a higher interest coverage ratio is generally seen as favorable, as it suggests the company is financially stable and has a lower risk of defaulting on its debt obligations. Emerson Electric Company's interest coverage ratio has shown variability, which may warrant further investigation into the company's financial health and debt management practices.
Peer comparison
Sep 30, 2024