Flowserve Corporation (FLS)
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 | 481,384 | 477,446 | 437,474 | 392,063 | 324,606 | 279,966 | 275,320 | 251,083 | 200,619 | 202,537 | 210,183 | 216,273 | 285,364 | 320,149 | 356,626 | 394,624 | 365,192 | 350,499 | 364,385 | 348,422 |
| Interest expense (ttm) | US$ in thousands | 69,302 | 65,706 | 66,392 | 66,029 | 66,923 | 62,947 | 57,256 | 51,764 | 46,246 | 45,107 | 48,271 | 51,531 | 57,616 | 62,625 | 62,589 | 61,167 | 57,352 | 53,527 | 52,798 | 53,911 |
| Interest coverage | 6.95 | 7.27 | 6.59 | 5.94 | 4.85 | 4.45 | 4.81 | 4.85 | 4.34 | 4.49 | 4.35 | 4.20 | 4.95 | 5.11 | 5.70 | 6.45 | 6.37 | 6.55 | 6.90 | 6.46 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $481,384K ÷ $69,302K
= 6.95
Flowserve Corporation's interest coverage ratio has been gradually declining from a high of 6.90 as of June 30, 2020, to 4.85 as of March 31, 2023. This could be a concerning trend as a lower interest coverage ratio indicates the company may have more difficulty meeting its interest obligations. Although there was a slight increase in the ratio to 7.27 as of September 30, 2024, it decreased to 6.95 by December 31, 2024. It is essential for investors and stakeholders to monitor this ratio closely, as a consistently low interest coverage ratio can signal financial distress and potential liquidity issues for the company.
Peer comparison
Dec 31, 2024