Expeditors International of Washington, Inc. (EXPD)

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	1,041,320	939,933	1,824,370	1,925,030	956,783
Interest expense	US$ in thousands	—	4,800	23,277	411	219
Interest coverage		—	195.82	78.38	4,683.77	4,368.87

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $1,041,320K ÷ $—K
= —

Interest coverage measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.

Based on the data provided for Expeditors International of Washington, Inc., the interest coverage ratio has fluctuated over the years:

- As of December 31, 2020, the interest coverage ratio was 4,368.87, indicating a very strong ability to cover interest expenses.
- By December 31, 2021, the ratio had improved further to 4,683.77, showing continued strength in covering interest payments.
- However, there was a significant drop in the interest coverage ratio by December 31, 2022, to 78.38. While still above 1, this notable decrease could be a cause for concern and may require further investigation.
- The ratio then improved to 195.82 by December 31, 2023, suggesting a recovery in the company's ability to cover interest expenses.

It is important to note that the data indicates "—'" for December 31, 2024, implying that no specific value was available for this period.

Overall, the trend in Expeditors International of Washington, Inc.'s interest coverage ratio shows fluctuations, with periods of strong coverage followed by a notable decline and subsequent recovery. Monitoring this ratio over time is crucial in assessing the company's financial health and ability to meet its debt obligations.