International Seaways Inc (INSW)
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 | 427,719 | 534,459 | 542,765 | 584,376 | 604,961 | 694,640 | 709,471 | 621,495 | 447,855 | 187,951 | -1,287 | -93,802 | -101,204 | -185,187 | -95,496 | -11,694 | 45,168 | 179,281 | 145,300 | 66,888 |
| Interest expense (ttm) | US$ in thousands | 49,704 | 55,727 | 156,144 | 159,482 | 161,117 | 166,758 | 67,731 | 63,282 | 59,075 | 53,855 | 48,715 | 41,229 | 35,769 | 31,721 | 29,081 | 31,983 | 36,712 | 39,969 | 48,980 | 57,542 |
| Interest coverage | 8.61 | 9.59 | 3.48 | 3.66 | 3.75 | 4.17 | 10.47 | 9.82 | 7.58 | 3.49 | -0.03 | -2.28 | -2.83 | -5.84 | -3.28 | -0.37 | 1.23 | 4.49 | 2.97 | 1.16 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $427,719K ÷ $49,704K
= 8.61
The interest coverage ratio for International Seaways Inc fluctuated over the analyzed period, reflecting its ability to cover interest expenses with operating income. The ratio was below 1 for several quarters from March 2021 to June 2022, indicating that the company's operating income was insufficient to cover its interest obligations during those periods. However, there was a significant improvement in the interest coverage ratio starting from September 2022, reaching a peak of 10.47 in June 2023, and remaining above 3 for the subsequent quarters until December 2024.
This improvement suggests that International Seaways Inc's ability to meet its interest payments strengthened significantly, indicating better financial stability and a reduced risk of default. It is essential for investors and creditors to monitor this ratio to assess the company's financial health and risk of insolvency. Further analysis of the company's operational efficiency, profitability, and overall financial performance would provide a more comprehensive understanding of its ability to service its debt obligations.
Peer comparison
Dec 31, 2024