Graco Inc (GGG)

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 — 646,843 575,621 518,680 385,931
Interest expense US$ in thousands 2,828 5,191 9,897 10,215 11,280
Interest coverage 0.00 124.61 58.16 50.78 34.21

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $2,828K
= 0.00

Based on the provided data for Graco Inc's interest coverage ratio over the years, we can see a significant improvement in the company's ability to cover its interest expenses. The interest coverage ratio has steadily increased from 34.21 in December 31, 2020, to 50.78 in December 31, 2021, further up to 58.16 in December 31, 2022, and significantly higher to 124.61 in December 31, 2023.

However, there seems to be a discrepancy in the data for December 31, 2024, where the interest coverage ratio is recorded as 0.00. It is essential to investigate this anomaly further to understand the reasons behind this abrupt change.

Overall, the trend indicates that Graco Inc's ability to meet its interest obligations has been strong and improving over the years, reflecting a positive sign of financial stability and efficiency in managing its debt obligations.