JBTMarel Corp (JBTM)
Interest coverage
| Jun 30, 2025 | Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -85,300 | -97,200 | 114,800 | 188,100 | 177,700 | 191,400 | 186,800 | 165,500 | 158,900 | 145,700 | 147,100 | 133,200 | 138,900 | 154,200 | 161,400 | 168,400 | 155,200 | 154,500 | 159,400 | 178,100 |
| Interest expense (ttm) | US$ in thousands | 86,600 | 58,900 | 19,400 | 20,900 | 22,300 | 26,400 | 31,000 | 27,200 | 24,900 | 18,800 | 13,400 | 9,800 | 8,700 | 8,700 | 8,700 | 9,000 | 9,800 | 11,200 | 13,900 | 16,600 |
| Interest coverage | -0.98 | -1.65 | 5.92 | 9.00 | 7.97 | 7.25 | 6.03 | 6.08 | 6.38 | 7.75 | 10.98 | 13.59 | 15.97 | 17.72 | 18.55 | 18.71 | 15.84 | 13.79 | 11.47 | 10.73 |
June 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-85,300K ÷ $86,600K
= -0.98
The interest coverage ratio of JBTMarel Corp has demonstrated significant variability over the analyzed period, reflecting fluctuating ability to meet interest obligations from earnings before interest and taxes (EBIT). As of September 30, 2020, the ratio stood at 10.73, indicating the company earned approximately 10.73 times its interest expenses, a strong level of coverage. This upward trend continued through 2021, reaching a peak of 18.71 on September 30, 2021, suggesting improved profitability and capacity to service debt.
Subsequently, a gradual decline is observed from late 2021 through 2022, with the ratio decreasing to 13.59 at September 2022 and further dwindling to 10.98 at the close of 2022. This reduction signifies a diminishing buffer to cover interest expenses. The most notable decline occurs in the first half of 2023, where the ratio decreases markedly to 7.75 by March and further to 6.38 by June, reflecting either reduced earnings, increased interest expenses, or both.
The downward trend continues into late 2023, with the ratio falling to approximately 6.08 at September 2023 and 5.92 at December 2023, approaching a lower threshold of coverage. The concern intensifies in the early months of 2024, where the ratio briefly improves to 7.25 in March and slightly increases to 7.97 in June; however, by September 2024, it declines again to 9.00, before falling below unity at -1.65 in March 2025 and further to -0.98 in June 2025. Such negative ratios signal that the firm’s earnings before interest and taxes are insufficient to cover interest expenses, indicating potential financial distress or significant profitability challenges.
Overall, the trend from 2020 through early 2025 indicates a meaningful deterioration in the company’s ability to cover interest obligations, culminating in periods of negative coverage. This decline warrants attention to underlying earnings performance, debt management strategies, and potential financial vulnerabilities.
Peer comparison
Jun 30, 2025