Itron Inc (ITRI)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 285,640 | 273,721 | 244,647 | 211,232 | 134,340 | 96,365 | 44,629 | -25,410 | -9,204 | -130,468 | -134,842 | -119,511 | -98,129 | 41,921 | 13,494 | -13,488 | -13,716 | -18,239 | 44,160 | 131,838 |
| Interest expense (ttm) | US$ in thousands | 5,489 | 11,658 | 8,498 | 8,185 | 8,349 | 8,272 | 7,506 | 7,189 | 6,724 | 6,462 | 7,411 | 19,755 | 28,638 | 37,337 | 45,519 | 43,199 | 44,001 | 46,325 | 48,383 | 50,195 |
| Interest coverage | 52.04 | 23.48 | 28.79 | 25.81 | 16.09 | 11.65 | 5.95 | -3.53 | -1.37 | -20.19 | -18.19 | -6.05 | -3.43 | 1.12 | 0.30 | -0.31 | -0.31 | -0.39 | 0.91 | 2.63 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $285,640K ÷ $5,489K
= 52.04
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates that the company is more capable of servicing its debt. Over the reported period for Itron Inc:
- From March 31, 2020, to June 30, 2021, the company experienced declining interest coverage ratios, reaching negative values by the end of 2020.
- The negative values indicate that Itron Inc was not generating enough operating income to cover its interest expenses during this period, which may raise concerns about the company's financial health.
- Starting from June 30, 2021, the interest coverage ratio began to improve, showing positive values from June 30, 2023, onwards.
- By the end of the reporting period on December 31, 2024, Itron Inc had substantially improved its interest coverage ratio, exceeding 50, which suggests a significant enhancement in the company's ability to meet its interest payments.
Overall, the trend of the interest coverage ratio for Itron Inc indicates challenges in the past, followed by a marked recovery in its ability to cover interest expenses, reflecting a positive turnaround in the company's financial performance and debt-servicing capacity.
Peer comparison
Dec 31, 2024