Enersys (ENS)
Interest coverage
| 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 | Jul 5, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 342,139 | 355,535 | 340,509 | 310,589 | 270,168 | 227,667 | 204,895 | 198,676 | 211,716 | 215,768 | 216,400 | 218,209 | 208,571 | 175,194 | 165,674 | 172,880 | 190,610 | 206,221 | 212,340 | 218,488 |
| Interest expense (ttm) | US$ in thousands | 49,954 | 54,148 | 59,932 | 63,176 | 59,529 | 53,913 | 46,155 | 40,267 | 37,777 | 37,515 | 37,122 | 37,378 | 38,436 | 40,934 | 42,672 | 42,940 | 43,673 | 42,941 | 38,934 | 35,250 |
| Interest coverage | 6.85 | 6.57 | 5.68 | 4.92 | 4.54 | 4.22 | 4.44 | 4.93 | 5.60 | 5.75 | 5.83 | 5.84 | 5.43 | 4.28 | 3.88 | 4.03 | 4.36 | 4.80 | 5.45 | 6.20 |
March 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $342,139K ÷ $49,954K
= 6.85
Enersys' interest coverage ratio has shown a fluctuating trend over the past few quarters. The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income.
Looking at the data, we can see that Enersys' interest coverage ratio has ranged between 3.88 and 6.85 over the past few quarters. A higher interest coverage ratio indicates a stronger ability to cover interest expenses with operating income. Enersys' interest coverage ratio has generally been above 4, suggesting that the company has been able to cover its interest expenses comfortably.
It is important to note that a consistent and healthy interest coverage ratio is essential for a company's financial stability and creditworthiness. Enersys' ability to maintain its interest coverage ratio above 4 indicates a reasonable level of financial stability in meeting its debt obligations. However, the fluctuation in the ratio over time should be closely monitored to assess any potential risks related to the company's debt servicing capabilities.
Peer comparison
Mar 31, 2024