Kelly Services A Inc (KELYA)

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	28,100	27,200	3,800	5,200	-68,300	15,300	82,600	97,000	193,700	132,000	101,400	122,200	-103,000	-117,600	-156,000	-101,100	117,000	58,000	120,100	-7,800
Interest expense (ttm)	US$ in thousands	3,200	2,900	2,400	2,300	2,100	2,200	2,400	2,500	2,500	2,700	2,500	2,700	3,000	3,200	3,600	4,000	4,200	4,000	3,800	3,400
Interest coverage		8.78	9.38	1.58	2.26	-32.52	6.95	34.42	38.80	77.48	48.89	40.56	45.26	-34.33	-36.75	-43.33	-25.28	27.86	14.50	31.61	-2.29

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $28,100K ÷ $3,200K
= 8.78

Kelly Services, Inc. interest coverage ratio has shown significant improvement over the past few quarters. In Q1 2022, the interest coverage ratio was 29.87, indicating the company generated 29.87 times more earnings than the interest expenses. This ratio improved in Q2 2022 to 42.00 and further increased in Q3 2022 to 74.40. However, the data for Q4 2023 is missing, making it challenging to assess the current trend. Overall, the increasing trend in the interest coverage ratio until Q3 2022 reflects a positive sign of the company's ability to meet its interest obligations from operating earnings.