Ingredion Incorporated (INGR)
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 | 1,053,000 | 1,081,000 | 1,011,000 | 944,000 | 940,000 | 909,000 | 883,000 | 849,000 | 769,000 | 705,000 | 693,000 | 702,000 | 322,000 | 393,000 | 375,000 | 275,000 | 598,000 | 603,000 | 640,000 | 684,000 |
| Interest expense (ttm) | US$ in thousands | 39,000 | 56,000 | 81,000 | 101,000 | 114,000 | 122,000 | 120,000 | 107,000 | 99,000 | 81,000 | 77,000 | 79,000 | 74,000 | 80,000 | 82,000 | 82,000 | 81,000 | 78,000 | 80,000 | 77,000 |
| Interest coverage | 27.00 | 19.30 | 12.48 | 9.35 | 8.25 | 7.45 | 7.36 | 7.93 | 7.77 | 8.70 | 9.00 | 8.89 | 4.35 | 4.91 | 4.57 | 3.35 | 7.38 | 7.73 | 8.00 | 8.88 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,053,000K ÷ $39,000K
= 27.00
Based on the provided data, Ingredion Incorporated's interest coverage ratio has fluctuated over the periods reported. The interest coverage ratio indicates the company's ability to cover its interest expenses with operating profits.
Looking at the trend, we see that the interest coverage ratio was relatively stable around 7-9 times from March 2020 to March 2022. However, there was a significant decline in the ratio in the subsequent quarters, dropping to a low of 3.35 in March 2021. This may indicate a potential strain on the company's ability to cover its interest obligations with operating income during that period.
Subsequently, there was a gradual improvement in the interest coverage ratio, reaching a peak of 27.00 in December 2024. This significant increase suggests that the company's operating profits have improved substantially, allowing it to comfortably cover its interest expenses.
Overall, the trend in Ingredion Incorporated's interest coverage ratio reflects fluctuations in its profitability and ability to service its debt obligations. It is important for investors and stakeholders to monitor this ratio to assess the company's financial health and ability to meet its debt payment obligations.
Peer comparison
Dec 31, 2024