Koppers Holdings Inc (KOP)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 145,500 | 195,600 | 140,200 | 160,100 | 159,000 |
| Interest expense | US$ in thousands | 76,200 | 71,000 | 44,800 | 40,500 | 48,900 |
| Interest coverage | 1.91 | 2.75 | 3.13 | 3.95 | 3.25 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $145,500K ÷ $76,200K
= 1.91
Based on the provided data for Koppers Holdings Inc, the interest coverage ratio has fluctuated over the years.
As of December 31, 2020, the interest coverage ratio was 3.25, indicating that the company's operating income was able to cover its interest expenses approximately 3.25 times. This suggests a moderate level of financial stability in meeting interest payments.
By December 31, 2021, the interest coverage ratio improved to 3.95, reflecting a stronger ability to cover interest costs. This may signify improved profitability or better management of debt levels during that period.
However, by December 31, 2022, the interest coverage ratio decreased to 3.13, which could suggest a slight decline in the company's ability to cover interest expenses with its operating income.
The ratio further decreased to 2.75 by December 31, 2023, indicating a potentially higher risk for the company in meeting its interest obligations from its operating earnings.
Lastly, as of December 31, 2024, the interest coverage ratio decreased significantly to 1.91, implying that the company may be facing challenges in covering its interest expenses with its operating income.
Overall, the trend in the interest coverage ratio for Koppers Holdings Inc shows some variability, with periods of improvement and decline. It is essential for stakeholders to monitor this ratio closely as it provides insights into the company's financial health and ability to service its debt obligations.
Peer comparison
Dec 31, 2024