Koppers Holdings Inc (KOP)
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 | 195,000 | 185,900 | 176,000 | 150,900 | 139,800 | 155,900 | 137,400 | 153,900 | 160,200 | 151,000 | 221,800 | 225,700 | 191,900 | 182,100 | 124,300 | 112,700 | 128,500 | 115,900 | 109,000 | 92,300 |
| Interest expense (ttm) | US$ in thousands | 71,000 | 65,800 | 58,200 | 49,000 | 44,800 | 42,300 | 41,100 | 40,100 | 40,500 | 40,800 | 42,400 | 45,100 | 48,900 | 53,000 | 56,600 | 59,500 | 61,700 | 61,300 | 61,000 | 59,800 |
| Interest coverage | 2.75 | 2.83 | 3.02 | 3.08 | 3.12 | 3.69 | 3.34 | 3.84 | 3.96 | 3.70 | 5.23 | 5.00 | 3.92 | 3.44 | 2.20 | 1.89 | 2.08 | 1.89 | 1.79 | 1.54 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $195,000K ÷ $71,000K
= 2.75
Based on the provided data, Koppers Holdings Inc's interest coverage ratio has shown some variability over the past eight quarters. The interest coverage ratio measures the company's ability to pay interest expenses on its outstanding debt with its operating income.
Across the quarters, the interest coverage ratio has ranged from a low of 2.67 in Q2 2022 to a high of 3.13 in Q1 2022. This indicates that the company's ability to cover its interest expenses with its operating income improved in Q1 2022 compared to the other quarters.
Overall, the interest coverage ratio has generally been above 2, which suggests that Koppers Holdings Inc has been able to cover its interest expenses comfortably with its operating income. However, it is essential to monitor any fluctuations in this ratio, as a declining trend could indicate potential challenges in meeting debt obligations in the future.
Peer comparison
Dec 31, 2023