JBTMarel Corp (JBTM)

The interest coverage ratio for JBTMarel Corp has exhibited a noteworthy decline over the period from December 31, 2020 to December 31, 2024. Specifically, the ratio was 11.47 in 2020, indicating that the company’s earnings before interest and taxes (EBIT) comfortably exceeded its interest obligations, supporting a robust ability to meet interest expenses without undue strain. In 2021, the ratio slightly increased to 11.67, reflecting stable or marginally improved capacity to service interest costs relative to earnings.

However, a downward trend begins in 2022 when the ratio decreases to 8.36, suggesting a reduction in EBIT relative to interest expenses and implying some deterioration in the company's ability to cover interest obligations from its operating earnings. The decline continues into 2023, with the ratio further decreasing to 7.30, indicating an ongoing weakening of interest coverage. This downward trajectory persists into 2024, with the ratio reaching 5.92, which, while still above the common threshold of 1.5-3 considered as indicative of adequate interest coverage, signals increased financial risk and potential pressure on the company’s ability to meet interest payments from operational earnings.

Overall, the trend reflects a gradual erosion of the company’s capacity to comfortably cover interest expenses solely from its earnings before interest and taxes. This evolving pattern warrants ongoing monitoring to evaluate whether the decline stabilizes or signals further worsening of financial health. Nevertheless, across the analyzed period, JBTMarel Corp maintains a positive interest coverage ratio, indicating that interest obligations have been met without immediate concern.

Peer comparison

Dec 31, 2024