Innospec Inc (IOSP)

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 177,900 181,300 177,600 171,100 161,600 163,700 171,900 184,000 187,300 176,200 157,500 148,200 132,100 126,000 111,400 21,000 33,700 48,100 69,500 154,600
Interest expense (ttm) US$ in thousands 2,100 3,000 3,800 2,000 2,300 3,600 3,100 3,200 3,300 1,500 1,600 1,500 1,500 1,400 1,400 1,600 1,300 1,100 700 300
Interest coverage 84.71 60.43 46.74 85.55 70.26 45.47 55.45 57.50 56.76 117.47 98.44 98.80 88.07 90.00 79.57 13.12 25.92 43.73 99.29 515.33

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $177,900K ÷ $2,100K
= 84.71

The interest coverage ratio for Innospec Inc has shown fluctuations over the periods analyzed. As of December 31, 2024, the interest coverage ratio stands at 84.71, indicating that the company's earnings before interest and taxes are sufficient to cover its interest expenses nearly 85 times. This suggests a strong ability to meet its interest obligations comfortably.

However, it is worth noting that the interest coverage ratio has fluctuated over the past few years, ranging from as high as 515.33 on March 31, 2020, to as low as 13.12 on March 31, 2021. Such fluctuations could be attributed to various factors such as changes in the company's profitability, debt levels, and interest rates.

Overall, the consistent improvement in the interest coverage ratio since the low point in March 31, 2021, indicates a positive trend in the company's ability to cover its interest expenses. It is essential for investors and creditors to continue monitoring this ratio to assess the company's financial health and its ability to meet its debt obligations.