Kirby Corporation (KEX)

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	346,163	314,212	281,699	243,213	209,093	179,804	-197,427	-221,165	-248,315	-255,058	90,493	100,385	-413,566	-422,999	-375,276	-333,486	245,142	209,843	200,518	179,650
Interest expense (ttm)	US$ in thousands	52,008	50,883	49,252	47,606	44,588	42,895	41,640	41,706	42,469	43,595	44,904	46,906	48,739	50,284	52,785	55,592	55,994	55,217	53,252	50,277
Interest coverage		6.66	6.18	5.72	5.11	4.69	4.19	-4.74	-5.30	-5.85	-5.85	2.02	2.14	-8.49	-8.41	-7.11	-6.00	4.38	3.80	3.77	3.57

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $346,163K ÷ $52,008K
= 6.66

Interest coverage is a key financial ratio that measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.

Analyzing Kirby Corp.'s interest coverage ratio over the past eight quarters, we observe a positive trend from Q1 2022 to Q4 2023. The ratio has steadily increased from 2.41 in Q1 2022 to 6.35 in Q4 2023. This indicates an improvement in Kirby Corp.'s ability to cover its interest expenses with its operating income.

The interest coverage ratio of 6.35 in Q4 2023 suggests that Kirby Corp. generated operating income more than six times its interest expense during that quarter. This signifies a strong financial position and indicates that the company is in a healthy position to meet its interest obligations.

Overall, the increasing trend in Kirby Corp.'s interest coverage ratio reflects positively on the company's financial health and ability to manage its debt obligations effectively.