Entegris Inc (ENTG)
Interest coverage
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 536,390 | 465,876 | 437,333 | 571,315 | 484,625 | 539,260 | 433,787 | 320,725 | 459,732 | 468,598 | 602,662 | 569,053 | 520,316 | 481,253 | 452,400 | 432,419 | 402,887 | 368,701 | 313,089 | 396,234 |
| Interest expense (ttm) | US$ in thousands | 215,217 | 230,230 | 256,384 | 283,605 | 312,378 | 328,516 | 334,846 | 285,939 | 212,669 | 138,523 | 63,768 | 42,464 | 41,240 | 43,999 | 47,385 | 49,693 | 48,600 | 49,720 | 48,327 | 46,637 |
| Interest coverage | 2.49 | 2.02 | 1.71 | 2.01 | 1.55 | 1.64 | 1.30 | 1.12 | 2.16 | 3.38 | 9.45 | 13.40 | 12.62 | 10.94 | 9.55 | 8.70 | 8.29 | 7.42 | 6.48 | 8.50 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $536,390K ÷ $215,217K
= 2.49
Entegris Inc's interest coverage ratio has shown fluctuations over the period analyzed. The interest coverage ratio indicates the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A higher interest coverage ratio suggests a company is more capable of servicing its debt.
From March 31, 2020, to June 30, 2022, Entegris Inc's interest coverage ratio generally increased steadily, indicating improving ability to cover interest expenses. The ratio peaked at 13.40 on March 31, 2022, which reflects a strong ability to meet its interest obligations comfortably.
However, starting from June 30, 2022, the interest coverage ratio began to decline significantly. This downward trend suggests a potential weakening in Entegris Inc's ability to cover its interest expenses with its operating income. Notably, the ratio dropped to 1.12 on March 31, 2023, suggesting a significant decline in financial health in this period.
The declining trend continued until September 30, 2024, with the ratio fluctuating around low levels. Although there was a slight improvement towards the end of the period, with the ratio reaching 2.49 on December 31, 2024, it is essential to monitor this trend closely.
Overall, the analysis indicates that Entegris Inc experienced a period of strong interest coverage followed by a worrisome decline. This trend underscores the importance of closely monitoring the company's financial performance and debt management strategies to ensure long-term financial stability and sustainability.
Peer comparison
Dec 31, 2024