Itron Inc (ITRI)
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 | 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 | 122,076 | 121,859 | 125,760 | 105,482 |
| Interest expense (ttm) | US$ in thousands | 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 | 52,453 | 53,782 | 55,085 | 56,234 |
| Interest coverage | 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 | 2.33 | 2.27 | 2.28 | 1.88 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $134,340K ÷ $8,349K
= 16.09
Itron Inc.'s interest coverage ratio has shown fluctuation over the quarters in the provided data. The interest coverage ratio, which is a measure of a company's ability to meet its interest payments on outstanding debt, has improved significantly over the quarters from negative figures in Q3 2022 and Q2 2022 to positive values in the subsequent quarters.
In Q4 2022, the interest coverage ratio was 5.11, indicating that the company generated operating income 5.11 times its interest expenses for the period. This ratio improved further in Q1 2023 to 15.05, suggesting a stronger ability to cover interest payments. However, there was a slight decrease in Q2 2023 to 37.57, and a further decrease in Q3 2023 to 122.66. The absence of data for Q4 2023 makes it difficult to assess the trend at the end of the year.
The significant improvements in the interest coverage ratio from negative values in Q2 and Q3 2022 to positive figures in subsequent quarters can be viewed positively. It indicates that the company's operating income is sufficient to cover its interest expenses, demonstrating improved financial health and reduced risk of default on debt obligations in recent periods.
Peer comparison
Dec 31, 2023