International Seaways Inc (INSW)

Interest coverage ratio is an important financial metric that indicates a company's ability to meet its interest obligations on outstanding debt. International Seaways Inc's interest coverage ratio has shown fluctuations over the past five years as follows:

- As of December 31, 2020, the interest coverage ratio was 0.72, indicating that the company's operating income was only sufficient to cover 72% of its interest expenses. This suggests a strained financial position and raises concerns about the company's ability to service its debt comfortably.

- By December 31, 2021, the interest coverage ratio deteriorated significantly to -2.90, implying that the company's operating income was insufficient to cover its interest expenses, resulting in a negative coverage ratio. This indicates a high risk of default on interest payments.

- However, there was a notable improvement in the interest coverage ratio by December 31, 2022, reaching 7.74. This indicates that the company's operating income was able to cover its interest expenses approximately 7.74 times. This improvement suggests a better ability to meet interest obligations.

- The trend continued positively by December 31, 2023, with an even higher interest coverage ratio of 9.36, indicating a stronger ability to service debt obligations comfortably.

- As of December 31, 2024, the interest coverage ratio remained at 9.36, indicating that the company's operating income continued to comfortably cover its interest expenses around 9.36 times.

Overall, based on the trend observed over the years, International Seaways Inc has shown progress in improving its ability to meet its interest obligations, as reflected by the increasing interest coverage ratios from 2020 to 2024. However, sustained monitoring of this metric is advisable to ensure the company's continued financial health and stability.

Peer comparison

Dec 31, 2024