Chart Industries Inc (GTLS)

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	392,300	296,400	233,700	167,600	151,500	111,800	83,900	79,800	88,500	90,600	104,900	105,200	92,200	85,200	80,500	70,900	52,000	62,800	70,900	74,000
Interest expense (ttm)	US$ in thousands	325,800	252,800	171,500	96,200	25,700	26,900	24,900	23,100	22,400	16,400	19,600	24,900	31,800	45,900	47,100	39,100	31,200	24,700	16,200	16,000
Interest coverage		1.20	1.17	1.36	1.74	5.89	4.16	3.37	3.45	3.95	5.52	5.35	4.22	2.90	1.86	1.71	1.81	1.67	2.54	4.38	4.62

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $392,300K ÷ $325,800K
= 1.20

Chart Industries Inc's interest coverage has shown a declining trend over the past few quarters. The interest coverage ratio, which measures the company's ability to meet its interest obligations from its operating income, was at its highest in Q1 2022 at 6.70 times. However, it has since decreased steadily to 1.45 in Q4 2023.

A decreasing interest coverage ratio can indicate that the company may be facing challenges in generating enough operating income to cover its interest expenses. This declining trend raises concerns about the company's financial stability and ability to service its debt obligations in the future.

It is important for investors and stakeholders to closely monitor Chart Industries Inc's interest coverage ratio in the upcoming quarters to assess the company's financial health and ability to manage its debt effectively.