Knowles Cor (KN)
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 | 51,100 | -169,400 | -205,600 | -437,100 | -414,800 | -167,300 | -118,100 | 118,800 | 115,800 | 112,800 | 91,800 | 57,100 | 29,200 | 22,400 | 42,400 | 67,200 | 81,200 | 84,100 | 80,100 | 77,900 |
| Interest expense (ttm) | US$ in thousands | 5,400 | 3,400 | 3,900 | 3,900 | 3,900 | 4,600 | 7,700 | 11,000 | 14,200 | 16,200 | 16,700 | 16,700 | 16,400 | 27,900 | 23,300 | 22,800 | 22,600 | 11,700 | 15,600 | 16,100 |
| Interest coverage | 9.46 | -49.82 | -52.72 | -112.08 | -106.36 | -36.37 | -15.34 | 10.80 | 8.15 | 6.96 | 5.50 | 3.42 | 1.78 | 0.80 | 1.82 | 2.95 | 3.59 | 7.19 | 5.13 | 4.84 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $51,100K ÷ $5,400K
= 9.46
Knowles Corp's interest coverage ratio has shown fluctuation over the past eight quarters, ranging from a low of 8.02 in Q4 2023 to a high of 25.10 in Q4 2022. Generally, a higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations using its operating income.
The highest interest coverage ratio was observed in Q4 2022 at 25.10, which suggests a strong ability to cover interest expenses. This could be a positive sign that the company is likely managing its debt efficiently and generating sufficient operating income to comfortably cover its interest costs.
However, the interest coverage ratio dropped significantly in Q4 2023 to 8.02, indicating a potential decline in the company's ability to cover its interest expenses. It's important to monitor whether this is a temporary fluctuation or a concerning trend that could indicate financial distress.
Overall, it's crucial for Knowles Corp to maintain a healthy interest coverage ratio consistently to ensure financial stability and solvency. Continued monitoring of this ratio will be essential for stakeholders to assess the company's ability to meet its debt obligations in the long term.
Peer comparison
Dec 31, 2023