Innospec Inc (IOSP)
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 | 161,600 | 187,300 | 132,100 | 33,700 | 149,900 |
| Interest expense | US$ in thousands | 0 | 0 | 0 | 800 | 1,000 |
| Interest coverage | — | — | — | 42.12 | 149.90 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $161,600K ÷ $0K
= —
The interest coverage ratio for Innospec Inc has shown a consistent improvement over the past five years. In 2019, the interest coverage ratio was 31.23, indicating that the company generated 31.23 times more earnings before interest and taxes (EBIT) than the interest expense. This ratio increased to 41.56 in 2020, further to 86.87 in 2021, and significantly improved to 170.27 in 2022.
The substantial increase in the interest coverage ratio is a positive indicator of the company's ability to meet its interest payment obligations from its operating income. A higher interest coverage ratio implies a lower risk of default on interest payments and reflects better financial health and stability. This upward trend suggests that Innospec Inc has been effectively managing its debt and generating sufficient profits to cover its interest expenses comfortably.
Peer comparison
Dec 31, 2023