Hexcel Corporation (HXL)

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	215,300	208,200	205,400	207,900	175,200	157,700	139,700	92,100	51,800	6,500	-53,800	-63,900	12,500	133,000	280,000	390,300	428,900	427,800	416,800	397,900
Interest expense (ttm)	US$ in thousands	34,000	35,600	36,800	36,500	36,200	36,200	36,700	37,100	38,300	38,500	38,700	40,100	41,800	43,000	44,300	45,500	45,500	45,300	44,900	41,700
Interest coverage		6.33	5.85	5.58	5.70	4.84	4.36	3.81	2.48	1.35	0.17	-1.39	-1.59	0.30	3.09	6.32	8.58	9.43	9.44	9.28	9.54

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $215,300K ÷ $34,000K
= 6.33

Hexcel Corp.'s interest coverage ratio has shown a consistent improving trend over the past eight quarters, reflecting the company's ability to meet its interest obligations with its operating income. The interest coverage ratio has increased steadily from 2.61 in Q1 2022 to 6.57 in Q4 2023. This indicates that the company's operating income is more than sufficient to cover its interest expenses, providing a safety cushion against potential financial risks related to debt obligations. The gradual improvement in the interest coverage ratio implies that Hexcel Corp. has been effectively managing its debt and generating stronger earnings to support its interest payments over time.