ESCO Technologies Inc (ESE)
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 | 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 | 309,977 | 304,405 | 305,072 |
| Interest expense (ttm) | US$ in thousands | 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 | 8,396 | 8,072 | 8,342 |
| Interest coverage | 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 | 36.92 | 37.71 | 36.57 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $129,311K ÷ $9,809K
= 13.18
The interest coverage ratio for Esco Technologies, Inc. has been consistently strong over the past eight quarters, showing a decreasing trend from Q2 2022 to Q1 2024. The ratio indicates the company's ability to meet its interest obligations from its operating income. Esco's interest coverage ratio has remained comfortably above 10 for all quarters, reflecting a healthy financial position. However, the recent decline in the ratio may indicate a potential decrease in the company's ability to cover its interest expenses in the short term, warranting further monitoring and analysis.
Peer comparison
Dec 31, 2023
Company name
Symbol
Interest coverage
ESCO Technologies Inc
ESE
13.18
Iridium Communications Inc
IRDM
4.34
Lumentum Holdings Inc
LITE
-26.25