Insteel Industries Inc (IIIN)
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 | 28,984 | 41,842 | 66,144 | 102,512 | 146,205 | 161,818 | 162,785 | 136,591 | 105,621 | 86,199 | 63,062 | 47,881 | 34,165 | 24,276 | 12,865 | 7,060 | 2,941 | 7,623 | 21,760 | 35,835 |
| Interest expense (ttm) | US$ in thousands | 92 | 87 | 90 | 93 | 93 | 91 | 91 | 92 | 93 | 96 | 101 | 103 | 105 | 106 | 109 | 145 | 164 | 168 | 177 | 138 |
| Interest coverage | 315.04 | 480.94 | 734.93 | 1,102.28 | 1,572.10 | 1,778.22 | 1,788.85 | 1,484.68 | 1,135.71 | 897.91 | 624.38 | 464.86 | 325.38 | 229.02 | 118.03 | 48.69 | 17.93 | 45.38 | 122.94 | 259.67 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $28,984K ÷ $92K
= 315.04
The interest coverage ratio for Insteel Industries Inc has shown a fluctuating trend over the past few quarters. As of December 31, 2023, the interest coverage ratio was exceptionally high at 315.04, indicating that the company's operating income was 315 times higher than its interest expense for that period, reflecting a strong ability to cover its interest obligations. This follows a consistent upward trend since the end of 2022, where the company experienced a significant improvement in its interest coverage ratio.
The substantial increase in interest coverage from the end of 2022 to the end of 2023 highlights the company's improved profitability and efficiency in generating earnings to cover its interest expenses. The trend of increasing interest coverage ratios is a positive indication of the company's financial health and its ability to meet its debt obligations comfortably. However, it is important to note that the interest coverage ratio can be influenced by various factors, including changes in interest rates, operating income, and debt levels.
Overall, the trend of rising interest coverage ratios for Insteel Industries Inc is a favorable sign of its financial strength and ability to manage its debt effectively. However, stakeholders should continue to monitor this ratio along with other financial metrics to assess the company's overall financial performance and stability.
Peer comparison
Dec 31, 2023