Littelfuse Inc (LFUS)
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 | 368,464 | 411,928 | 430,909 | 449,382 | 469,260 | 449,581 | 465,311 | 447,588 | 385,642 | 357,859 | 302,310 | 194,103 | 162,372 | 129,675 | 112,284 | 176,868 | 192,791 | 212,102 | 241,163 | 248,151 |
| Interest expense (ttm) | US$ in thousands | 39,866 | 38,950 | 37,248 | 31,560 | 26,216 | 21,695 | 17,898 | 18,156 | 18,527 | 18,717 | 19,103 | 20,332 | 21,077 | 21,693 | 22,264 | 21,998 | 22,266 | 22,423 | 22,639 | 22,832 |
| Interest coverage | 9.24 | 10.58 | 11.57 | 14.24 | 17.90 | 20.72 | 26.00 | 24.65 | 20.82 | 19.12 | 15.83 | 9.55 | 7.70 | 5.98 | 5.04 | 8.04 | 8.66 | 9.46 | 10.65 | 10.87 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $368,464K ÷ $39,866K
= 9.24
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates a stronger ability to meet interest obligations.
Looking at the data provided for Littelfuse Inc, we can observe that the interest coverage ratio has been fluctuating over time. The trend shows an overall increase in the interest coverage ratio from 5.04 in March 2020 to 14.24 in March 2023, indicating an improvement in the company's ability to cover its interest payments.
The data suggests that Littelfuse Inc has demonstrated a consistently healthy interest coverage ratio, with values generally above 5, which is often considered a minimum threshold for a company's financial health. The recent ratios above 10 indicate a robust ability to cover interest expenses, implying a lower risk of default on debt obligations.
Overall, the interest coverage ratio trend for Littelfuse Inc reflects a positive financial position, with improving ability to meet interest payments and a reduced risk of financial distress related to debt obligations.
Peer comparison
Dec 31, 2023