IDEX Corporation (IEX)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 812,500 | 790,300 | 620,900 | 515,100 | 577,200 |
| Interest expense | US$ in thousands | 51,700 | 40,700 | 41,000 | 44,800 | 44,300 |
| Interest coverage | 15.72 | 19.42 | 15.14 | 11.50 | 13.03 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $812,500K ÷ $51,700K
= 15.72
Idex Corporation's interest coverage ratio has exhibited some fluctuation over the five-year period from 2019 to 2023. The interest coverage ratio measures the company's ability to meet its interest obligations from its operating profits. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.
In 2023, Idex Corporation's interest coverage ratio was 14.38, showing a slight decrease from the previous year's ratio of 19.02. Despite this decrease, the ratio remains at a healthy level, indicating the company's ability to comfortably cover its interest expenses.
The trend over the five years shows some variability, with ratios ranging from 11.90 to 19.02. This variability could be due to changes in the company's operating profits, interest expenses, or a combination of both factors.
Overall, Idex Corporation has maintained a generally solid interest coverage ratio over the period, suggesting a strong ability to meet its interest obligations. It is important for investors and creditors to monitor this ratio to assess the company's financial health and its ability to manage its debt effectively.
Peer comparison
Dec 31, 2023