Emerson Electric Company (EMR)
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 | 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 | 1,039,000 | 976,000 | 1,080,000 |
| Interest expense (ttm) | US$ in thousands | 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 | 181,000 | 230,000 | 226,000 |
| Interest coverage | 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 | 5.74 | 4.24 | 4.78 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $118,000K ÷ $201,000K
= 0.59
Interest coverage is a financial metric that indicates a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. A higher interest coverage ratio suggests a stronger ability to cover interest payments.
Based on the data provided for Emerson Electric Co., the interest coverage ratios for the past eight quarters are as follows:
- Q1 2024: Not available
- Q4 2023: Not available
- Q3 2023: 19.69
- Q2 2023: 15.43
- Q1 2023: 16.29
- Q4 2022: 18.56
- Q3 2022: 19.00
- Q2 2022: 19.83
The trend in interest coverage ratios shows fluctuation over the quarters, with the ratios ranging from 15.43 to 19.83. Generally, the interest coverage ratios are above 15, indicating that Emerson Electric Co. has been able to comfortably cover its interest expenses with its EBIT in most quarters.
However, it is important to note that the lack of data for the most recent quarters (Q1 2024 and Q4 2023) makes it challenging to provide a comprehensive analysis of the current financial position of Emerson Electric Co. It is advisable to monitor the interest coverage ratios consistently to track the company's ability to meet its interest obligations over time.
Peer comparison
Dec 31, 2023