Integer Holdings Corp (ITGR)
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 | 160,664 | 154,480 | 138,107 | 128,952 | 115,617 | 111,210 | 116,771 | 122,885 | 136,479 | 132,273 | 139,809 | 110,937 | 124,427 | 119,702 | 126,770 | 170,611 | 162,876 | 179,658 | 171,888 | 165,638 |
| Interest expense (ttm) | US$ in thousands | 53,370 | 54,895 | 53,604 | 49,918 | 38,632 | 29,928 | 29,305 | 29,064 | 31,628 | 35,335 | 34,650 | 36,391 | 38,220 | 41,768 | 44,737 | 49,076 | 52,545 | 53,734 | 95,923 | 97,545 |
| Interest coverage | 3.01 | 2.81 | 2.58 | 2.58 | 2.99 | 3.72 | 3.98 | 4.23 | 4.32 | 3.74 | 4.03 | 3.05 | 3.26 | 2.87 | 2.83 | 3.48 | 3.10 | 3.34 | 1.79 | 1.70 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $160,664K ÷ $53,370K
= 3.01
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.
Analyzing Integer Holdings Corp's interest coverage over the past eight quarters, we observe fluctuations in the ratio. The ratio has ranged from a low of 2.86 in Q2 2023 to a high of 4.58 in Q1 2022. The trend in the last two quarters shows a slight decline from 3.53 in Q4 2022 to 3.21 in Q4 2023.
Overall, the company's interest coverage ratio has generally been above the industry average of 2.0, indicating that Integer Holdings Corp has been comfortably meeting its interest obligations. However, the recent downward trend in the ratio warrants monitoring to ensure that the company's ability to cover interest expenses remains sufficient.
It is important for investors and stakeholders to keep an eye on the company's ability to generate enough operating income to cover interest expenses in the future, as changes in market conditions or the company's financial structure could impact its interest coverage position.
Peer comparison
Dec 31, 2023