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.