Flowserve Corporation (FLS)
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 | 272,236 | 262,735 | 262,274 | 240,670 | 191,295 | 147,099 | 149,448 | 144,378 | 180,973 | 224,764 | 259,442 | 220,590 | 247,972 | 276,824 | 284,196 | 351,074 | 372,060 | 356,799 | 317,544 | 268,815 |
| Interest expense (ttm) | US$ in thousands | 66,923 | 62,948 | 57,257 | 51,765 | 46,247 | 45,107 | 48,271 | 51,531 | 57,616 | 62,624 | 61,387 | 60,000 | 56,185 | 52,362 | 52,834 | 53,912 | 54,980 | 56,540 | 56,385 | 57,311 |
| Interest coverage | 4.07 | 4.17 | 4.58 | 4.65 | 4.14 | 3.26 | 3.10 | 2.80 | 3.14 | 3.59 | 4.23 | 3.68 | 4.41 | 5.29 | 5.38 | 6.51 | 6.77 | 6.31 | 5.63 | 4.69 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $272,236K ÷ $66,923K
= 4.07
Flowserve Corp.'s interest coverage ratio has shown a consistent upward trend over the past eight quarters, indicating the company's ability to comfortably meet its interest obligations with its earnings before interest and taxes (EBIT). The ratio has improved from 4.66 in Q4 2022 to 5.57 in Q4 2023, reflecting a positive trend in the company's financial health. This suggests that Flowserve Corp. has sufficient operating income to cover its interest expenses, providing potential investors and creditors with a favorable indication of the company's financial stability and risk management. Overall, the steady increase in the interest coverage ratio demonstrates improved financial performance and solvency for Flowserve Corp.
Peer comparison
Dec 31, 2023