Corning Incorporated (GLW)
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 | 1,135,000 | 820,000 | 754,000 | 847,000 | 890,000 | 898,000 | 954,000 | 1,165,000 | 1,438,000 | 1,835,000 | 2,095,000 | 2,180,000 | 2,112,000 | 2,105,000 | 1,810,000 | 1,132,000 | 509,000 | 180,000 | 288,000 | 765,000 |
| Interest expense (ttm) | US$ in thousands | 329,000 | 340,000 | 339,000 | 336,000 | 329,000 | 315,000 | 306,000 | 297,000 | 292,000 | 289,000 | 288,000 | 294,000 | 300,000 | 302,000 | 300,000 | 289,000 | 276,000 | 261,000 | 246,000 | 183,000 |
| Interest coverage | 3.45 | 2.41 | 2.22 | 2.52 | 2.71 | 2.85 | 3.12 | 3.92 | 4.92 | 6.35 | 7.27 | 7.41 | 7.04 | 6.97 | 6.03 | 3.92 | 1.84 | 0.69 | 1.17 | 4.18 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,135,000K ÷ $329,000K
= 3.45
The interest coverage ratio of Corning Incorporated has exhibited some fluctuations over the past few quarters. Starting from March 2020 at 4.18, the ratio decreased to 1.17 by June 2020, indicating a potential decrease in the company's ability to cover its interest expenses. The ratio further dropped to 0.69 by September 2020, highlighting a concerning trend.
However, the company managed to improve its interest coverage ratio steadily from December 2020 (1.84) to June 2021 (6.03), and continued to strengthen its position through September 2021 (6.97) and December 2021 (7.04). This upward trend in the ratio indicates an enhanced ability to meet its interest obligations comfortably.
Although the interest coverage ratio slightly dipped in the following quarters, it remained above 2, which is generally considered the minimum acceptable level. The ratio stood at 3.45 by December 2024, suggesting that Corning Incorporated still maintains a reasonable capacity to cover its interest payments despite the minor fluctuations seen in recent periods. The company should continue to monitor and manage its interest coverage to ensure financial stability and sustainability.
Peer comparison
Dec 31, 2024