Entegris Inc (ENTG)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 536,336 | 484,634 | 459,749 | 520,316 | 402,887 |
| Interest expense | US$ in thousands | 215,217 | 312,378 | 212,669 | 41,240 | 48,600 |
| Interest coverage | 2.49 | 1.55 | 2.16 | 12.62 | 8.29 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $536,336K ÷ $215,217K
= 2.49
Entegris Inc's interest coverage ratio has shown fluctuations over the years based on the provided data.
As of December 31, 2020, the interest coverage ratio was 8.29, indicating that the company's operating income was able to cover its interest expenses 8.29 times over. This suggests a relatively healthy financial position at that time.
By December 31, 2021, the interest coverage ratio improved to 12.62, showing that the company's ability to meet its interest obligations strengthened significantly.
However, there was a notable decline in the interest coverage ratio by December 31, 2022, to 2.16, suggesting a decrease in the company's ability to cover its interest payments with its operating income. This could be a cause for concern as it may indicate increased financial risk.
The trend continued into December 31, 2023, with a further decrease in the interest coverage ratio to 1.55, indicating a potential strain on the company's finances to meet its interest expenses.
There was a slight improvement in the interest coverage ratio by December 31, 2024, to 2.49, but it still remains relatively low compared to previous years.
Overall, the fluctuating trend in Entegris Inc's interest coverage ratio implies varying levels of financial stability and risk management. It is important for the company to closely monitor and manage its interest expenses to ensure long-term financial health and sustainability.
Peer comparison
Dec 31, 2024