Hillenbrand Inc (HI)
Interest coverage
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -24,700 | -43,600 | 269,300 | 736,100 | 750,200 | 762,700 | 763,200 | 348,100 | 357,200 | 321,300 | 318,900 | 354,100 | 402,800 | 620,500 | 608,700 | 429,400 | 299,700 | 208,500 | 183,700 | 292,200 |
| Interest expense (ttm) | US$ in thousands | 121,500 | 107,500 | 91,100 | 78,900 | 70,600 | 67,500 | 69,200 | 67,900 | 64,300 | 67,300 | 68,800 | 71,000 | 74,300 | 81,800 | 82,500 | 83,900 | 77,400 | 66,600 | 52,100 | 36,600 |
| Interest coverage | -0.20 | -0.41 | 2.96 | 9.33 | 10.63 | 11.30 | 11.03 | 5.13 | 5.56 | 4.77 | 4.64 | 4.99 | 5.42 | 7.59 | 7.38 | 5.12 | 3.87 | 3.13 | 3.53 | 7.98 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-24,700K ÷ $121,500K
= -0.20
The interest coverage ratio for Hillenbrand Inc fluctuated over the past several quarters, indicating varying levels of the company's ability to meet its interest obligations. The ratio was negative in the most recent two quarters, suggesting that the company's earnings were not sufficient to cover its interest expenses.
Looking back further, the interest coverage ratio improved significantly in the preceding quarters, reaching a peak of 11.30 in the third quarter of 2023. This indicated a strong ability to cover interest payments with operating income during that period.
However, the ratio dipped in the following quarters but remained above 5, which generally indicates a healthy interest coverage. The gradual decline in the ratio from late 2023 to mid-2024 may suggest that the company's operating income was not growing at the same pace as its interest expenses during that period.
Overall, fluctuations in the interest coverage ratio of Hillenbrand Inc reflect changes in its financial performance and ability to service its debt obligations. Investors and analysts may need to monitor this ratio closely to assess the company's financial health and management of its debt levels.
Peer comparison
Sep 30, 2024