Fortune Brands Innovations Inc. (FBIN)
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 | 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 | 670,100 | 649,200 | 637,600 | 626,000 |
| Interest expense (ttm) | US$ in thousands | 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 | 94,200 | 95,200 | 90,600 | 83,500 |
| Interest coverage | 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 | 7.11 | 6.82 | 7.04 | 7.50 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $614,800K ÷ $116,400K
= 5.28
The interest coverage ratio for Fortune Brands Innovations Inc. has shown a generally positive trend over the past years, indicating the company's ability to comfortably meet its interest payments with its operating income. The ratio has been above 5 consistently, reflecting a healthy level of interest coverage.
The interest coverage ratio was at its peak in Mar 31, 2022, at 11.33, suggesting a strong ability to cover interest payments. Subsequently, the ratio experienced a slight decline but remained above 5, which is generally considered a safe threshold for creditors.
Overall, the trend in Fortune Brands Innovations Inc.'s interest coverage ratio demonstrates a solid financial position with a comfortable ability to service its debt obligations through its operating income.
Peer comparison
Dec 31, 2023