Howmet Aerospace Inc (HWM)
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 | 1,193,000 | 1,076,000 | 941,000 | 883,000 | 835,000 | 766,000 | 691,000 | 627,000 | 583,000 | 594,000 | 573,000 | 443,000 | 602,000 | 926,000 | 1,146,000 | 933,000 | 931,000 | 665,000 | 717,000 | 1,167,000 |
| Interest expense (ttm) | US$ in thousands | 218,000 | 223,000 | 226,000 | 228,000 | 229,000 | 230,000 | 236,000 | 245,000 | 259,000 | 277,000 | 291,000 | 369,000 | 381,000 | 387,000 | 395,000 | 337,000 | 338,000 | 342,000 | 345,000 | 348,000 |
| Interest coverage | 5.47 | 4.83 | 4.16 | 3.87 | 3.65 | 3.33 | 2.93 | 2.56 | 2.25 | 2.14 | 1.97 | 1.20 | 1.58 | 2.39 | 2.90 | 2.77 | 2.75 | 1.94 | 2.08 | 3.35 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,193,000K ÷ $218,000K
= 5.47
Howmet Aerospace Inc's interest coverage ratio has shown a positive trend over the past eight quarters, increasing from 3.59 in Q1 2022 to 6.29 in Q4 2023. This indicates the company's increasing ability to cover its interest expenses with its operating income. The rising trend suggests that Howmet Aerospace's profitability and cash flow generation have strengthened over time, reducing its financial risk related to debt obligations. Overall, the improving interest coverage ratio reflects a healthier financial position for Howmet Aerospace Inc.
Peer comparison
Dec 31, 2023
Company name
Symbol
Interest coverage
Howmet Aerospace Inc
HWM
5.47
Kaiser Aluminum Corporation
KALU
2.20
Mueller Industries Inc
MLI
675.58
Quanex Building Products
NX
15.77