Corning Incorporated (GLW)
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 | 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 | 1,306,000 | 1,623,000 | 1,780,000 | 1,801,000 |
| Interest expense (ttm) | US$ in thousands | -177,000 | -11,000 | 144,000 | 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 | 122,000 | 113,000 | 103,000 | 142,000 |
| Interest coverage | — | — | 6.62 | 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 | 10.70 | 14.36 | 17.28 | 12.68 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $890,000K ÷ $-177,000K
= —
Corning, Inc.'s interest coverage has shown a declining trend over the past few quarters, indicating a potential decrease in its ability to cover its interest expenses with its operating income. The interest coverage ratio, which measures the company's ability to meet its interest obligations, decreased from 7.80 in Q1 2022 to 3.06 in Q4 2023.
This downward trend in interest coverage raises concerns about the company's ability to generate enough earnings to cover its interest payments. A lower interest coverage ratio may indicate increased financial risk and potentially signal to investors that the company may have difficulty meeting its debt obligations in the future.
It is important for Corning, Inc. to closely monitor its interest coverage ratio and take proactive steps to improve its financial health, such as increasing profitability, reducing debt levels, or refinancing debt at lower interest rates.
Peer comparison
Dec 31, 2023