Itron Inc (ITRI)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 264,110 | 134,340 | -9,204 | -98,129 | -13,716 |
| Interest expense | US$ in thousands | 5,489 | 8,349 | 6,724 | 28,638 | 44,001 |
| Interest coverage | 48.12 | 16.09 | -1.37 | -3.43 | -0.31 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $264,110K ÷ $5,489K
= 48.12
Itron Inc's interest coverage ratio has shown significant fluctuations over the years based on the provided data.
On December 31, 2020, the interest coverage ratio was -0.31, indicating that the company's operating income was not sufficient to cover its interest expenses. This raises concerns about the company's ability to meet its interest obligations.
The situation deteriorated further by December 31, 2021, with the interest coverage ratio dropping to -3.43. This suggests a notable decline in the company's ability to cover its interest costs from its operating income.
By December 31, 2022, although the interest coverage ratio improved to -1.37, it still indicates that Itron Inc may be facing challenges in meeting its interest obligations with its current level of operating income.
However, there was a significant improvement in the company's financial position by December 31, 2023, as the interest coverage ratio rose substantially to 16.09. This indicates that Itron Inc's operating income is now more than sufficient to cover its interest expenses, reflecting a positive development.
The positive trend continued into December 31, 2024, with the interest coverage ratio further increasing to 48.12. This indicates a strong ability to cover interest costs with operating income, reflecting improved financial health for Itron Inc.
Overall, the analysis of Itron Inc's interest coverage ratio highlights both challenges and improvements in the company's ability to meet its interest expenses over the years, with recent years showing a positive trend towards better financial sustainability.
Peer comparison
Dec 31, 2024