Fortune Brands Innovations Inc. (FBIN)
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 | 737,900 | 693,500 | 684,900 | 638,400 | 614,800 | 663,200 | 659,400 | 726,300 | 774,300 | 786,200 | 881,400 | 958,100 | 1,023,400 | 1,001,300 | 952,100 | 831,700 | 747,700 | 737,000 | 666,500 | 694,200 |
| Interest expense (ttm) | US$ in thousands | 120,500 | 121,200 | 124,300 | 119,700 | 116,400 | 121,700 | 121,400 | 124,200 | 119,100 | 106,300 | 93,900 | 84,600 | 84,300 | 82,600 | 82,100 | 83,100 | 83,800 | 86,800 | 90,300 | 92,600 |
| Interest coverage | 6.12 | 5.72 | 5.51 | 5.33 | 5.28 | 5.45 | 5.43 | 5.85 | 6.50 | 7.40 | 9.39 | 11.33 | 12.14 | 12.12 | 11.60 | 10.01 | 8.92 | 8.49 | 7.38 | 7.50 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $737,900K ÷ $120,500K
= 6.12
The interest coverage ratio of Fortune Brands Innovations Inc. has fluctuated over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio indicates the company's ability to meet its interest payment obligations with its operating income.
The interest coverage ratio ranged from a low of 5.28 in December 31, 2023, to a high of 12.14 in December 31, 2021. This shows that the company's ability to cover its interest expenses improved significantly in 2021 but experienced a decline in 2023.
Overall, Fortune Brands Innovations Inc. maintained relatively healthy interest coverage ratios above 5 throughout the period, which suggests that the company generally had enough operating income to cover its interest expenses. However, management should monitor this ratio to ensure it remains at a satisfactory level to meet its debt obligations effectively.
Peer comparison
Dec 31, 2024