Ingersoll Rand Inc (IR)
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 | 1,175,400 | 1,133,900 | 1,027,700 | 950,500 | 857,500 | 825,500 | 774,700 | 840,200 | 628,400 | 526,700 | 446,600 | 109,100 | 89,100 | -44,200 | -41,800 | 102,200 | 260,400 | 365,100 | 410,800 | 438,800 |
| Interest expense (ttm) | US$ in thousands | 156,700 | 153,700 | 140,700 | 123,100 | 103,200 | 88,200 | 84,100 | 83,600 | 87,700 | 92,700 | 99,000 | 107,100 | 111,100 | 107,100 | 101,500 | 93,100 | 88,400 | 91,100 | 92,300 | 96,000 |
| Interest coverage | 7.50 | 7.38 | 7.30 | 7.72 | 8.31 | 9.36 | 9.21 | 10.05 | 7.17 | 5.68 | 4.51 | 1.02 | 0.80 | -0.41 | -0.41 | 1.10 | 2.95 | 4.01 | 4.45 | 4.57 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,175,400K ÷ $156,700K
= 7.50
Ingersoll-Rand Inc's interest coverage ratio has remained relatively stable over the past eight quarters, ranging between 7.52 to 8.55. The interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income. A higher ratio suggests the company is in a better position to cover its interest expenses from operating income. Ingersoll-Rand's interest coverage ratios above 7 indicate a healthy ability to pay interest expenses. However, a slight decrease in the most recent quarter compared to the previous quarters could signify a potential weakening of the company's ability to cover interest payments, warranting further monitoring and analysis.
Peer comparison
Dec 31, 2023