Littelfuse Inc (LFUS)
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 | 188,018 | 289,067 | 285,717 | 310,274 | 359,648 | 404,417 | 424,650 | 444,242 | 469,260 | 420,939 | 434,755 | 420,598 | 359,552 | 383,312 | 337,533 | 232,973 | 196,509 | 151,989 | 126,538 | 190,431 |
| Interest expense (ttm) | US$ in thousands | 38,717 | 38,116 | 38,445 | 38,526 | 38,561 | 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 |
| Interest coverage | 4.86 | 7.58 | 7.43 | 8.05 | 9.33 | 10.38 | 11.40 | 14.08 | 17.90 | 19.40 | 24.29 | 23.17 | 19.41 | 20.48 | 17.67 | 11.46 | 9.32 | 7.01 | 5.68 | 8.66 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $188,018K ÷ $38,717K
= 4.86
Littelfuse Inc's interest coverage ratio has shown fluctuations over the reported periods. The interest coverage ratio measures the company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates a stronger ability to cover interest expenses with operating income.
From March 31, 2020, to June 30, 2022, the interest coverage ratio steadily increased from 8.66 to 24.29, indicating a positive trend in the company's ability to cover interest expenses. This reflects a healthy financial position and profitability during this period.
However, from September 30, 2022, to December 31, 2024, the interest coverage ratio declined from 19.40 to 4.86. This downward trend suggests a potential weakening in the company's ability to cover interest expenses with operating income, which could raise concerns about its financial stability and debt servicing capabilities.
Overall, Littelfuse Inc's interest coverage ratio has demonstrated both strength and vulnerability in different periods, highlighting the importance of monitoring the company's financial performance and debt management closely to ensure sustained financial health.
Peer comparison
Dec 31, 2024