GXO Logistics Inc (GXO)
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 | ||
|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 315,000 | 304,000 | 297,000 | 279,000 | 290,000 | 295,000 | 253,000 | 190,000 |
| Interest expense (ttm) | US$ in thousands | 53,000 | 51,000 | 43,000 | 38,000 | 29,000 | 24,000 | 23,000 | 20,000 |
| Interest coverage | 5.94 | 5.96 | 6.91 | 7.34 | 10.00 | 12.29 | 11.00 | 9.50 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $315,000K ÷ $53,000K
= 5.94
GXO Logistics Inc's interest coverage has been consistently strong over the past five quarters, with values ranging from 7.25 to 11.55. This metric indicates the company's ability to meet its interest obligations using its earnings before interest and taxes (EBIT).
The term "interest coverage" refers to the company's ability to cover its interest expense with operating income. A higher interest coverage ratio means that the company is better positioned to pay off its interest expense from its operating income. In GXO Logistics Inc's case, the trend of increasing interest coverage ratios from Q4 2022 to Q1 2023 shows an improving ability to cover interest payments.
Overall, GXO Logistics Inc's interest coverage ratios demonstrate the company's solid financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2023