Ingersoll Rand Inc (IR)
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 | 1,175,400 | 857,500 | 628,400 | 89,200 | 260,400 |
| Interest expense | US$ in thousands | 156,700 | 103,200 | 87,700 | 111,100 | 88,400 |
| Interest coverage | 7.50 | 8.31 | 7.17 | 0.80 | 2.95 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,175,400K ÷ $156,700K
= 7.50
Ingersoll-Rand Inc's interest coverage ratio, which measures the company's ability to meet its interest obligations on outstanding debt, has shown some fluctuation in recent years.
The interest coverage ratio was 7.93 in 2023, 8.55 in 2022, 7.16 in 2021, 0.95 in 2020, and 3.95 in 2019. A higher interest coverage ratio indicates that the company is in a better position to cover its interest payments from its operating income.
Overall, the trend in Ingersoll-Rand Inc's interest coverage ratio has been somewhat volatile, with fluctuations seen across the years. It is important for investors and stakeholders to monitor this ratio closely to assess the company's financial health and ability to manage its debt obligations. Improving or stable interest coverage ratios are generally seen as positive indicators of a company's financial strength and stability.
Peer comparison
Dec 31, 2023