International Flavors & Fragrances Inc (IFF)
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 | -2,079,000 | 562,000 | -1,559,000 | -1,520,000 | -1,289,000 | -1,221,000 | 1,054,000 | 968,000 | 622,000 | 549,000 | 367,000 | 383,000 | 556,000 | 572,529 | 621,209 | 685,791 | 672,554 | 661,128 | 598,064 | 573,646 |
| Interest expense (ttm) | US$ in thousands | 380,000 | 441,000 | 414,000 | 375,000 | 336,000 | 305,000 | 296,000 | 296,000 | 289,000 | 249,000 | 210,000 | 165,000 | 132,000 | 134,338 | 132,835 | 133,428 | 138,000 | 141,465 | 131,882 | 152,535 |
| Interest coverage | -5.47 | 1.27 | -3.77 | -4.05 | -3.84 | -4.00 | 3.56 | 3.27 | 2.15 | 2.20 | 1.75 | 2.32 | 4.21 | 4.26 | 4.68 | 5.14 | 4.87 | 4.67 | 4.53 | 3.76 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-2,079,000K ÷ $380,000K
= -5.47
International Flavors & Fragrances Inc. interest coverage has shown fluctuations over the past eight quarters. In Q1 2023, the interest coverage ratio was 2.37, indicating that the company generated 2.37 times the earnings needed to cover its interest expense. This was a decrease from the previous quarter, where the ratio was 1.70. The trend continued in Q3 2023, with the interest coverage ratio dropping to 1.35, the lowest point in the period analyzed.
The company's interest coverage ratio reached its peak in Q2 2022 at 3.93, suggesting a strong ability to meet its interest obligations from its earnings. However, there has been a general downward trend since then, with the ratio declining in subsequent quarters.
Overall, the declining trend in the interest coverage ratio could indicate that International Flavors & Fragrances Inc. may be facing challenges in generating sufficient earnings to cover its interest expenses. This trend warrants further investigation into the company's financial health and sustainability in meeting its debt obligations.
Peer comparison
Dec 31, 2023