IDEX Corporation (IEX)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 683,800 | 732,500 | 790,100 | 617,500 | 521,107 |
| Interest expense | US$ in thousands | 44,500 | 51,700 | 40,700 | 41,000 | 44,746 |
| Interest coverage | 15.37 | 14.17 | 19.41 | 15.06 | 11.65 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $683,800K ÷ $44,500K
= 15.37
The interest coverage ratio for IDEX Corporation has shown a positive trend over the past five years, indicating the company's ability to meet its interest obligations comfortably. The ratio has consistently increased from 11.65 in December 2020 to 15.37 in December 2024. This signifies that the company's operating income is more than sufficient to cover its interest expenses, providing a strong buffer against potential financial risks. The highest interest coverage of 19.41 in December 2022 further demonstrates the company's solid financial position and ability to manage its debt obligations effectively. Overall, the increasing trend in the interest coverage ratio reflects a positive financial performance and stability for IDEX Corporation.
Peer comparison
Dec 31, 2024