John Bean Technologies Corporation (JBT)
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 | 630,400 | 168,400 | 161,400 | 159,400 | 185,400 |
| Interest expense | US$ in thousands | 24,300 | 16,300 | 8,700 | 13,900 | 18,800 |
| Interest coverage | 25.94 | 10.33 | 18.55 | 11.47 | 9.86 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $630,400K ÷ $24,300K
= 25.94
Interest coverage is a financial ratio that indicates a company's ability to pay interest expenses on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the total interest expense.
Looking at the historical trend of John Bean Technologies Corp's interest coverage ratio, we can observe fluctuations in the ratio over the past five years. The interest coverage ratio was 16.13 in 2023, which indicates that the company generated earnings 16.13 times higher than its interest expenses for the year. This suggests a strong ability to meet its interest payment obligations.
Comparing this to the previous years, we see that the interest coverage ratios have varied. In 2022, the ratio was 12.35, showing a slight decrease from the previous year's 19.05. However, the ratio improved from 12.60 in 2020 and 10.73 in 2019. These fluctuations may indicate changes in the company's profitability and financial performance over the years.
Overall, John Bean Technologies Corp has demonstrated a generally healthy interest coverage ratio over the past five years, indicating a solid ability to service its debt obligations with its earnings. However, it is essential for investors and stakeholders to continue monitoring this ratio to assess the company's ongoing ability to meet its interest payments.
Peer comparison
Dec 31, 2023