Knowles Cor (KN)
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 | -197,200 | -199,000 | -196,100 | 56,400 | 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 |
| Interest expense (ttm) | US$ in thousands | 16,300 | 16,100 | 12,800 | 9,000 | 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 |
| Interest coverage | -12.10 | -12.36 | -15.32 | 6.27 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-197,200K ÷ $16,300K
= -12.10
The interest coverage ratio of Knowles Cor has shown significant fluctuations over the reporting periods. The ratio stood at a healthy level of 2.95 as of March 31, 2020, indicating the company's ability to cover its interest expenses almost three times over with its operating income. However, the ratio dropped to 1.82 by June 30, 2020, and further decreased to 0.80 by September 30, 2020, suggesting a deterioration in the company's ability to meet its interest obligations.
Subsequently, there was a notable improvement in the interest coverage ratio, reaching 10.80 by March 31, 2022, which indicates a substantial enhancement in the company's ability to cover its interest expenses with operating income. However, in the following quarters, the ratio experienced negative values, suggesting that operating income was insufficient to cover the interest expenses during those periods.
The interest coverage ratio improved again to 9.46 as of December 31, 2023, and maintained a positive trend up to June 30, 2024. However, the ratio turned negative again, indicating that the company may face challenges in meeting its interest payments with its operating income in those periods.
Overall, the fluctuations in Knowles Cor's interest coverage ratio reflect varying levels of financial stability and operational performance, highlighting the importance of closely monitoring the company's ability to service its debt obligations over time.
Peer comparison
Dec 31, 2024