Energizer Holdings Inc (ENR)
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 | 289,300 | 344,400 | -152,900 | -129,300 | -155,400 | -147,100 | 379,800 | 335,800 | 294,900 | 316,000 | 220,600 | 248,900 | 161,200 | 132,400 | 230,400 | 201,200 | 266,700 | 299,100 | 260,400 | 248,300 |
| Interest expense (ttm) | US$ in thousands | 166,500 | 168,700 | 169,100 | 168,000 | 164,300 | 158,400 | 153,200 | 150,700 | 151,500 | 161,800 | 175,200 | 187,400 | 195,500 | 195,000 | 193,500 | 194,600 | 224,600 | 226,000 | 228,100 | 193,900 |
| Interest coverage | 1.74 | 2.04 | -0.90 | -0.77 | -0.95 | -0.93 | 2.48 | 2.23 | 1.95 | 1.95 | 1.26 | 1.33 | 0.82 | 0.68 | 1.19 | 1.03 | 1.19 | 1.32 | 1.14 | 1.28 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $289,300K ÷ $166,500K
= 1.74
Based on the provided data, Energizer Holdings Inc's interest coverage ratio has been relatively stable over the past few quarters, ranging from 2.35 to 2.55. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt using its operating income.
An interest coverage ratio of above 1 indicates that the company is generating enough operating income to cover its interest expenses. Energizer's interest coverage ratio consistently above 2 suggests that the company has a comfortable cushion to meet its interest obligations.
A stable and healthy interest coverage ratio is an important indicator of financial health and stability, reassuring investors and creditors about the company's ability to manage its debt obligations. However, it is essential to consider other factors such as the overall debt levels, industry trends, and economic conditions when evaluating the financial health of a company.
Peer comparison
Dec 31, 2023