Corning Incorporated (GLW)
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 | 1,135,000 | 890,000 | 1,438,000 | 2,112,000 | 509,000 |
| Interest expense | US$ in thousands | 31,000 | 40,000 | 48,000 | 44,000 | 65,000 |
| Interest coverage | 36.61 | 22.25 | 29.96 | 48.00 | 7.83 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,135,000K ÷ $31,000K
= 36.61
Corning Incorporated's interest coverage ratio has exhibited fluctuations over the years based on the provided data. The interest coverage ratio indicates the company's ability to meet its interest obligations from its operating income.
In 2020, the interest coverage ratio was 7.83, suggesting that Corning had sufficient operating income to cover its interest payments almost 8 times over.
By the end of 2021, the interest coverage ratio significantly improved to 48.00, indicating a substantial increase in the company's ability to cover its interest expenses from operating income.
In 2022, the interest coverage ratio decreased to 29.96 but still remained at a healthy level, demonstrating that Corning had a strong operating performance relative to its interest obligations.
In 2023, the interest coverage ratio further declined to 22.25, indicating a decrease in the company's ability to cover interest payments from operating income compared to the previous year.
As of December 31, 2024, the interest coverage ratio rose to 36.61, showing an improvement in Corning's capacity to meet its interest expenses from operating income compared to the prior year.
Overall, the trend in Corning's interest coverage ratio suggests fluctuations but generally indicates that the company has managed its interest obligations well, with some years showing more robust coverage than others. Investors and creditors typically view a higher interest coverage ratio favorably as it signifies a greater ability to handle debt obligations.
Peer comparison
Dec 31, 2024