Insteel Industries Inc (IIIN)
Interest coverage
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 25,376 | 26,577 | 31,402 | 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 |
| Interest expense (ttm) | US$ in thousands | 89 | 96 | 97 | 92 | 87 | 90 | 93 | 93 | 91 | 91 | 92 | 93 | 96 | 101 | 103 | 105 | 106 | 109 | 145 | 164 |
| Interest coverage | 285.12 | 276.84 | 323.73 | 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 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $25,376K ÷ $89K
= 285.12
Insteel Industries Inc's interest coverage ratio has shown fluctuations over the past few years. The interest coverage ratio is a measure of a company's ability to pay interest expenses on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
From December 2019 to June 2020, Insteel Industries Inc's interest coverage ratio was relatively low, indicating a potentially higher risk of default on its interest payments. However, starting from the third quarter of 2020, the interest coverage ratio saw a significant increase, reaching a peak in the first quarter of 2023 at 1,102.28.
Subsequently, the interest coverage ratio fluctuated but generally remained at high levels, indicating strong earnings relative to interest expenses. In the most recent periods, the interest coverage ratio has been consistently high, with the latest figure reported at 285.12.
Overall, the trend in Insteel Industries Inc's interest coverage ratio indicates an improvement in the company's ability to cover its interest expenses, reflecting better financial health and reduced default risk related to debt servicing.
Peer comparison
Sep 30, 2024