IDEX Corporation (IEX)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 690,100 | 667,700 | 778,500 | 783,000 | 812,000 | 835,800 | 798,300 | 793,100 | 790,100 | 770,725 | 693,280 | 650,177 | 617,531 | 602,833 | 575,064 | 538,440 | 508,685 | 498,683 | 504,877 | 555,248 |
| Interest expense (ttm) | US$ in thousands | 44,500 | 39,400 | 42,800 | 48,000 | 51,700 | 52,200 | 48,100 | 44,300 | 40,700 | 38,200 | 38,098 | 39,803 | 41,079 | 42,267 | 43,411 | 44,645 | 44,746 | 45,037 | 45,725 | 44,297 |
| Interest coverage | 15.51 | 16.95 | 18.19 | 16.31 | 15.71 | 16.01 | 16.60 | 17.90 | 19.41 | 20.18 | 18.20 | 16.33 | 15.03 | 14.26 | 13.25 | 12.06 | 11.37 | 11.07 | 11.04 | 12.53 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $690,100K ÷ $44,500K
= 15.51
Based on the provided data, the interest coverage ratio of IDEX Corporation has shown a generally positive trend over the years. The interest coverage ratio measures the company's ability to meet interest payments on its outstanding debt. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.
From March 31, 2020, to December 31, 2024, IDEX Corporation's interest coverage ratio has consistently improved from 12.53 to 15.51. This indicates that the company's operating income has been sufficient to cover its interest expenses, providing a buffer against potential financial distress.
Although there were some fluctuations in the interest coverage ratio during the period, the overall trend has been positive, with the ratio generally trending upwards. This suggests that IDEX Corporation has managed its debt obligations effectively and has a stronger ability to meet its interest payments.
Investors and creditors may view the improving interest coverage ratio positively as it demonstrates the company's financial stability and ability to handle its debt burdens. However, it is essential for IDEX Corporation to maintain and potentially continue to increase its interest coverage ratio to ensure long-term financial health and sustainability.
Peer comparison
Dec 31, 2024