Chart Industries Inc (GTLS)

The interest coverage ratio of Chart Industries Inc has fluctuated over the past five years, providing insight into the company's ability to meet its interest payment obligations.

As of December 31, 2020, the interest coverage ratio stood at a comfortable 6.06, indicating that the company generated sufficient earnings to cover its interest expenses more than six times over. This suggests a healthy financial position and lower risk of default on debt obligations.

By December 31, 2021, the interest coverage ratio improved further to 8.70, demonstrating an even stronger ability to cover interest expenses. This increase reflects potentially higher profitability or lower interest costs, enhancing the company's financial stability.

However, the ratio declined notably by December 31, 2022, to 4.53, raising concerns about the company's ability to meet its interest payments comfortably. A lower interest coverage ratio may indicate heightened financial risk, possibly due to increased debt levels or declining profitability.

The trend continued into December 31, 2023, with the interest coverage ratio dropping significantly to 1.20, signaling a potential strain on the company's financial resources to cover interest expenses. A ratio below 1 implies that the company's earnings may not be sufficient to cover its interest payments, posing a risk of default.

Nevertheless, there was a slight improvement by December 31, 2024, with the interest coverage ratio increasing to 1.97. While this uptick is positive, it remains below the ideal level of 2 or higher, suggesting ongoing challenges in meeting interest obligations.

Overall, the fluctuating interest coverage ratios of Chart Industries Inc reflect varying degrees of financial health and risk over the years, emphasizing the importance of monitoring the company's earnings and interest payment obligations closely.