Hillenbrand Inc (HI)
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 | 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 | 341,300 | 335,200 | 344,600 |
| Interest expense (ttm) | US$ in thousands | 84,200 | 75,900 | 72,800 | 71,700 | 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 | 27,400 | 21,600 | 21,900 |
| Interest coverage | 8.74 | 9.88 | 10.48 | 10.64 | 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 | 12.46 | 15.52 | 15.74 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $736,100K ÷ $84,200K
= 8.74
Hillenbrand Inc's interest coverage ratio has shown a decreasing trend over the past eight quarters, indicating a weakening ability to cover its interest expenses with its earnings before interest and taxes (EBIT). The interest coverage ratio decreased from a high of 5.89 in Q4 2022 to a low of 3.64 in Q1 2024.
This declining trend suggests that the company may be facing challenges in generating enough earnings to comfortably cover its interest obligations. A lower interest coverage ratio can raise concerns among investors and lenders about the company's financial health and ability to meet its debt obligations.
It would be important for stakeholders to closely monitor Hillenbrand Inc's financial performance and assess its strategies to improve profitability and strengthen its interest coverage ratio in order to ensure long-term sustainability and financial stability.
Peer comparison
Dec 31, 2023