ESCO Technologies Inc (ESE)
Interest coverage
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 145,089 | 138,645 | 136,139 | 129,311 | 127,747 | 126,421 | 119,253 | 116,322 | 111,335 | 94,877 | 83,467 | 81,360 | 82,871 | 46,088 | 48,793 | 48,560 | 122,190 | 369,845 | 372,609 | 375,541 |
| Interest expense (ttm) | US$ in thousands | 15,200 | 11,606 | 10,766 | 9,809 | 8,800 | 8,238 | 7,074 | 5,825 | 4,900 | 3,831 | 2,980 | 2,392 | 2,200 | 7,183 | 7,022 | 6,913 | 6,700 | 3,578 | 5,232 | 6,834 |
| Interest coverage | 9.55 | 11.95 | 12.65 | 13.18 | 14.52 | 15.35 | 16.86 | 19.97 | 22.72 | 24.77 | 28.01 | 34.01 | 37.67 | 6.42 | 6.95 | 7.02 | 18.24 | 103.37 | 71.22 | 54.95 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $145,089K ÷ $15,200K
= 9.55
ESCO Technologies Inc's interest coverage ratio has shown a generally upward trend over the past few years, indicating the company's improving ability to cover its interest expenses with its operating income. The ratio has consistently been above 1, reflecting that the company has generated more than enough operating income to cover its interest obligations.
In the most recent period, as of September 30, 2024, the interest coverage ratio stands at 9.55, which means that ESCO Technologies Inc's operating income is 9.55 times its interest expense. This suggests a healthy financial position for the company, with a strong ability to service its debt obligations.
The trend of increasing interest coverage ratios over time is positive, indicating that ESCO Technologies Inc has been able to enhance its profitability and generate more earnings relative to its interest expenses. This trend could be a result of efficient cost management, improved revenue generation, or a combination of both.
Overall, the consistent improvement in ESCO Technologies Inc's interest coverage ratio reflects a sound financial position and suggests that the company has a solid ability to meet its debt obligations through its operating income.
Peer comparison
Sep 30, 2024