Kirby Corporation (KEX)
Interest coverage
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 | Jun 30, 2020 | Mar 31, 2020 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 445,115 | 435,123 | 391,432 | 357,233 | 315,157 | 283,166 | 251,736 | 218,050 | 192,867 | 163,503 | -197,242 | -220,324 | -245,538 | -252,335 | 85,033 | 96,732 | -406,169 | -413,593 | -365,834 | -327,737 |
Interest expense (ttm) | US$ in thousands | 49,129 | 51,583 | 52,471 | 51,938 | 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 |
Interest coverage | 9.06 | 8.44 | 7.46 | 6.88 | 6.06 | 5.57 | 5.11 | 4.58 | 4.33 | 3.81 | -4.74 | -5.28 | -5.78 | -5.79 | 1.89 | 2.06 | -8.33 | -8.23 | -6.93 | -5.90 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $445,115K ÷ $49,129K
= 9.06
Kirby Corporation's interest coverage ratio, which measures the company's ability to meet its interest payments on outstanding debt, has shown a fluctuating trend over the reporting periods. From the data provided, it is observed that Kirby Corporation had negative interest coverage ratios from March 31, 2020, to June 30, 2021, indicating that the company was not generating enough operating income to cover its interest expenses during those periods.
However, starting from March 31, 2021, Kirby Corporation's interest coverage ratio turned positive, indicating an improvement in its ability to cover interest obligations with operating income. The ratio continued to increase steadily through the subsequent quarters of 2022 and 2023, showing a positive trend in the company's financial health.
By the end of December 31, 2024, Kirby Corporation's interest coverage ratio reached its highest point at 9.06, demonstrating a strong ability to meet its interest payments. This positive trend suggests that the company's operational performance and profitability improved over the given periods, providing a more secure financial position in terms of servicing its debt obligations.
Peer comparison
Dec 31, 2024