ITT Inc (ITT)

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 677,600 636,500 570,700 553,100 528,200 560,300 539,200 497,700 468,000 430,200 409,900 489,000 504,300 550,400 386,200 227,100 226,500 149,600 364,600 430,100
Interest expense (ttm) US$ in thousands 36,600 28,900 23,100 20,200 16,700 16,000 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
Interest coverage 18.51 22.02 24.71 27.38 31.63 35.02 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

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $677,600K ÷ $36,600K
= 18.51

ITT Inc's interest coverage has fluctuated over the past few years, with a noticeable decline from a high of 256.19 as of June 30, 2022, to a low of 18.51 as of December 31, 2024. Generally, a higher interest coverage ratio indicates a company's ability to cover its interest expenses with operating income.

The interest coverage ratio was relatively strong in the beginning, exceeding 100 in several quarters. However, there has been a downward trend since September 30, 2022, suggesting a potential strain on the company's ability to cover its interest payments. A ratio below 1 would indicate that the company is not generating enough earnings before interest and taxes (EBIT) to cover its interest expenses.

It would be important to monitor ITT Inc's interest coverage closely to ensure that the company can comfortably meet its debt obligations and avoid financial distress. Additional analysis of the company's overall financial health and profitability would provide a more comprehensive understanding of its ability to manage debt.