Expeditors International of Washington, Inc. (EXPD)

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	1,041,323	956,754	871,299	895,877	957,070	1,105,038	1,424,295	1,684,664	1,880,377	2,139,403	2,093,714	1,995,493	1,909,326	1,567,608	1,329,916	1,166,897	940,437	838,966	793,571	738,146
Interest expense (ttm)	US$ in thousands	0	159	1,760	2,155	4,800	26,886	25,755	25,418	23,276	3,242	5,234	7,364	8,807	8,141	7,183	7,554	10,415	13,550	17,547	21,504
Interest coverage		—	6,017.32	495.06	415.72	199.39	41.10	55.30	66.28	80.79	659.90	400.02	270.98	216.80	192.56	185.15	154.47	90.30	61.92	45.23	34.33

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,041,323K ÷ $0K
= —

Expeditors International of Washington, Inc.'s interest coverage ratio shows a positive trend from March 31, 2020, to September 30, 2021, indicating the company's strong ability to cover its interest expenses with its operating income. The ratio increased significantly from 34.33 on March 31, 2020, to 192.56 on September 30, 2021, reaching a peak of 659.90 on September 30, 2022.

However, there was a substantial decline in the interest coverage ratio in the following periods, dropping to 80.79 on December 31, 2022, and fluctuating further until September 30, 2024. Notably, on December 31, 2024, the interest coverage ratio was not available.

The fluctuations in the interest coverage ratio from 2022 to 2024 may indicate changes in the company's financial performance or capital structure. Analysts should further investigate the reasons behind these fluctuations to assess the company's ability to meet its interest obligations in the long term and the potential impact on its financial stability.