Lennox International Inc (LII)
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 | 789,100 | 736,500 | 735,200 | 682,500 | 654,400 | 618,800 | 595,000 | 584,100 | 585,300 | 625,900 | 630,300 | 549,500 | 472,700 | 488,200 | 478,700 | 497,000 | 555,200 | 518,300 | 506,200 | 546,300 |
| Interest expense (ttm) | US$ in thousands | 51,700 | 53,000 | 52,300 | 46,000 | 38,600 | 32,200 | 28,200 | 25,900 | 25,100 | 25,000 | 25,000 | 25,500 | 28,200 | 33,100 | 39,100 | 45,300 | 47,500 | 46,300 | 44,100 | 40,800 |
| Interest coverage | 15.26 | 13.90 | 14.06 | 14.84 | 16.95 | 19.22 | 21.10 | 22.55 | 23.32 | 25.04 | 25.21 | 21.55 | 16.76 | 14.75 | 12.24 | 10.97 | 11.69 | 11.19 | 11.48 | 13.39 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $789,100K ÷ $51,700K
= 15.26
Lennox International Inc's interest coverage has been gradually declining over the past four quarters, from 17.12 in Q4 2022 to 16.46 in Q4 2023. This downward trend may indicate that the company's ability to cover its interest expenses with its earnings is weakening. However, Lennox International Inc's interest coverage ratios remain relatively high, suggesting that the company is still capable of comfortably meeting its interest obligations. It is important to continue monitoring this ratio to ensure that Lennox International Inc maintains a healthy level of interest coverage to support its financial stability.
Peer comparison
Dec 31, 2023