Koppers Holdings Inc (KOP)
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 | 145,500 | 179,300 | 183,000 | 180,000 | 195,600 | 186,500 | 176,600 | 151,500 | 140,200 | 156,500 | 138,400 | 154,000 | 160,100 | 150,700 | 185,200 | 190,800 | 160,000 | 149,200 | 129,900 | 117,600 |
| Interest expense (ttm) | US$ in thousands | 76,200 | 75,600 | 74,400 | 74,100 | 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 | 52,900 | 56,600 | 59,800 |
| Interest coverage | 1.91 | 2.37 | 2.46 | 2.43 | 2.75 | 2.83 | 3.03 | 3.09 | 3.13 | 3.70 | 3.37 | 3.84 | 3.95 | 3.69 | 4.37 | 4.23 | 3.27 | 2.82 | 2.30 | 1.97 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $145,500K ÷ $76,200K
= 1.91
The interest coverage ratio for Koppers Holdings Inc has shown a fluctuating trend over the past few years. It improved from 1.97 in March 2020 to a peak of 4.37 in June 2021, indicating the company's ability to comfortably cover its interest expenses with operating income. However, the ratio has since decreased, reaching 2.37 by December 2024.
The general trend suggests that Koppers Holdings Inc has experienced some variability in its ability to cover interest expenses over the period, with periods of both improvement and slight decline. It is important for the company to maintain a healthy interest coverage ratio to demonstrate its ability to meet its debt obligations and remain financially stable. Monitoring this ratio closely can help assess the company's financial health and liquidity position.
Peer comparison
Dec 31, 2024