Innospec Inc (IOSP)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 149,900 | 149,000 | 144,200 | 140,800 |
| Interest expense (ttm) | US$ in thousands | 1,400 | 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 | 400 | 6,300 | 6,500 | 6,600 |
| Interest coverage | 115.43 | 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 | 374.75 | 23.65 | 22.18 | 21.33 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $161,600K ÷ $1,400K
= 115.43
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. Innospec Inc's interest coverage ratio has shown a positive trend over the past eight quarters, ranging from 97.31 in Q2 2022 to 573.00 in Q2 2023. This indicates that the company has been consistently able to cover its interest payments from its operating profits, with a significant improvement in recent quarters. The substantial increase in the interest coverage ratio reflects a stronger financial position and lower financial risk for Innospec Inc. It suggests that the company has sufficient earnings to comfortably meet its interest obligations, which can be considered a positive indicator for investors and creditors.
Peer comparison
Dec 31, 2023