Itron Inc (ITRI)
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 | 134,340 | -9,204 | -98,129 | -13,716 | 122,076 |
| Interest expense | US$ in thousands | 8,349 | 6,724 | 28,638 | 44,001 | 52,453 |
| Interest coverage | 16.09 | -1.37 | -3.43 | -0.31 | 2.33 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $134,340K ÷ $8,349K
= 16.09
Itron Inc.'s interest coverage ratio has fluctuated over the past five years. In 2022, the company had a robust interest coverage ratio of 5.11, indicating its ability to cover interest expenses five times over with its earnings. This was a significant improvement from the previous year's ratio of 1.46, suggesting enhanced financial stability and lower financial risk.
However, in 2021, the interest coverage ratio was relatively low at 1.46, indicating that the company's earnings were only sufficient to cover its interest expenses by 1.46 times. This raised concerns about the company's ability to meet its interest obligations comfortably.
In 2020 and 2019, Itron Inc.'s interest coverage ratios improved to 2.11 and 2.75, respectively, showing a positive trend in its ability to cover interest expenses with earnings. Overall, fluctuations in the interest coverage ratio over the years suggest varying levels of financial health and risk management by the company. Further analysis of the underlying reasons for these fluctuations would provide a more detailed understanding of Itron Inc.'s financial performance and risk exposure.
Peer comparison
Dec 31, 2023