IDEX Corporation (IEX)
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 | 812,500 | 836,000 | 798,400 | 793,200 | 790,300 | 777,600 | 700,200 | 654,600 | 620,900 | 598,610 | 569,900 | 532,903 | 514,978 | 507,456 | 516,090 | 567,648 | 577,195 | 583,968 | 587,643 | 579,863 |
| Interest expense (ttm) | US$ in thousands | 51,700 | 52,200 | 48,100 | 44,300 | 40,700 | 38,200 | 38,100 | 39,800 | 41,000 | 42,242 | 43,384 | 44,623 | 44,800 | 44,996 | 45,684 | 44,256 | 44,300 | 44,298 | 43,926 | 44,055 |
| Interest coverage | 15.72 | 16.02 | 16.60 | 17.91 | 19.42 | 20.36 | 18.38 | 16.45 | 15.14 | 14.17 | 13.14 | 11.94 | 11.50 | 11.28 | 11.30 | 12.83 | 13.03 | 13.18 | 13.38 | 13.16 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $812,500K ÷ $51,700K
= 15.72
Idex Corporation has shown consistently strong interest coverage ratios over the past eight quarters, ranging from 14.38 to 19.94. The interest coverage ratio measures a company's ability to meet its interest payment obligations using its operating income.
The high values of the interest coverage ratio for Idex Corporation indicate that the company is generating sufficient operating income to comfortably cover its interest expenses. A ratio above 1 implies that the company is generating more than enough income to cover its interest payments, which is a positive sign of financial health and stability.
The trend of increasing interest coverage ratios from Q1 2022 to Q4 2023 indicates that Idex Corporation's ability to cover its interest obligations has been improving over time. This trend suggests that the company's profitability and operational efficiency have been strengthening, which bodes well for its ability to service its debt obligations in the future.
Overall, Idex Corporation's consistently high and improving interest coverage ratios reflect a healthy financial position and a strong capacity to meet its interest payment obligations, instilling confidence in its ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023