Flowserve Corporation (FLS)

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 455,456 290,674 200,623 285,363 250,304
Interest expense US$ in thousands 69,301 66,924 46,247 57,617 57,386
Interest coverage 6.57 4.34 4.34 4.95 4.36

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $455,456K ÷ $69,301K
= 6.57

Flowserve Corporation's interest coverage ratio measures the company's ability to cover its interest expenses with its operating income. Looking at the data provided, we see a relatively stable trend in the interest coverage ratio over the years.

In December 2020, the interest coverage ratio stood at 4.36, indicating that Flowserve had sufficient operating income to cover its interest expenses around 4 times. This ratio improved slightly to 4.95 by December 2021, suggesting a better ability to meet interest obligations.

However, in the subsequent years, the interest coverage ratio remained relatively consistent, hovering around 4.34 in both December 2022 and December 2023. This stability suggests that Flowserve's operating income continued to be adequate to cover its interest expenses to a similar extent.

By December 2024, we see a notable increase in the interest coverage ratio to 6.57, reflecting a significant improvement in Flowserve's ability to cover its interest payments with operating income. This improvement could indicate enhanced financial health and reduced financial risk for the company.

Overall, the stability and eventual improvement in Flowserve's interest coverage ratio indicate a consistent ability to meet its interest obligations with operating income, with a noticeable improvement by the end of the period analyzed.


Peer comparison

Dec 31, 2024