Eaton Corporation PLC (ETN)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,823,000 | 2,908,000 | 3,038,000 | 1,890,000 | 2,788,000 |
| Interest expense | US$ in thousands | 1,000 | 1,000 | 144,000 | 149,000 | 199,000 |
| Interest coverage | 3,823.00 | 2,908.00 | 21.10 | 12.68 | 14.01 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $3,823,000K ÷ $1,000K
= 3,823.00
Eaton Corporation plc's interest coverage has exhibited a positive trend over the past five years, reflecting the company's improving ability to cover its interest expenses with operating income. The interest coverage ratio has consistently increased from 12.13 in 2019 to 25.73 in 2023, indicating a significant enhancement in the company's ability to meet its interest obligations. This upward trajectory suggests a stronger financial position and better financial health for Eaton Corporation plc. Investors and creditors may view this trend favorably as it indicates improving profitability and cash flow generation relative to its interest expenses. Overall, the trend in Eaton Corporation plc's interest coverage ratio shows positive financial performance and effective management of its debt obligations.
Peer comparison
Dec 31, 2023