Ingredion Incorporated (INGR)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 957,000 | 762,000 | 310,000 | 582,000 | 664,000 |
| Interest expense | US$ in thousands | 114,000 | 99,000 | 74,000 | 7,000 | 5,000 |
| Interest coverage | 8.39 | 7.70 | 4.19 | 83.14 | 132.80 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $957,000K ÷ $114,000K
= 8.39
The interest coverage ratio for Ingredion Inc for the years 2019 and 2020 was 9.12 and 10.39, respectively. This ratio indicates the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio signifies a stronger ability to service debt through operating earnings. The increasing trend in the interest coverage ratio from 2019 to 2020 suggests that Ingredion Inc's earnings are more than sufficient to cover its interest expenses, reflecting a more stable financial position. However, as the data for 2021-2023 is not available, it is essential to monitor this ratio in subsequent years to assess the company's ongoing ability to meet its interest payments effectively.
Peer comparison
Dec 31, 2023