ITT Inc (ITT)
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 | 528,200 | 560,300 | 539,200 | 497,700 | 468,000 | 430,200 | 409,900 | 489,000 | 504,300 | 550,400 | 386,200 | 227,100 | 226,500 | 149,600 | 364,600 | 430,100 | 411,400 | 397,700 | 383,000 | 377,300 |
| Interest expense (ttm) | US$ in thousands | 13,900 | 13,200 | 14,100 | 10,100 | 6,100 | 3,400 | 1,600 | 4,600 | 5,700 | 5,400 | 6,100 | 4,800 | 4,100 | 5,700 | 4,900 | 3,100 | 3,000 | 3,600 | 3,900 | 5,000 |
| Interest coverage | 38.00 | 42.45 | 38.24 | 49.28 | 76.72 | 126.53 | 256.19 | 106.30 | 88.47 | 101.93 | 63.31 | 47.31 | 55.24 | 26.25 | 74.41 | 138.74 | 137.13 | 110.47 | 98.21 | 75.46 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $528,200K ÷ $13,900K
= 38.00
ITT Inc's interest coverage ratio has been consistently high in the past four quarters, indicating that the company has a strong ability to meet its interest obligations with its operating income. The interest coverage ratios for each quarter are as follows: Q4 2023 (50.78), Q3 2023 (85.88), Q2 2023 (82.58), Q1 2023 (76.09).
The overall trend shows a favorable position in terms of ability to cover interest payments from operating profits. This indicates that ITT Inc has a healthy financial position and is likely managing its debt efficiently. However, it is important to note that the interest coverage ratio for Q4 2022 was lower at 71.45, which may warrant further investigation to understand any potential changes in the company's financial health.
Peer comparison
Dec 31, 2023