MSA Safety (MSA)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 253,421 | 260,193 | 33,914 | 176,518 | 198,132 |
| Interest expense | US$ in thousands | 46,733 | 21,660 | 10,758 | 9,432 | 13,589 |
| Interest coverage | 5.42 | 12.01 | 3.15 | 18.71 | 14.58 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $253,421K ÷ $46,733K
= 5.42
The interest coverage ratio of MSA Safety Inc has exhibited fluctuating trends over the past five years. In 2023, the interest coverage ratio decreased to 10.05 from 15.88 in 2022, indicating a decreased ability to cover interest expenses. The ratio was notably lower compared to 2020 and 2019, where it was 34.18 and 23.96, respectively, reflecting a substantial decline in coverage. Despite the fluctuations, MSA Safety Inc has generally maintained a relatively healthy interest coverage ratio over the period under consideration, albeit with some variations. This ratio is crucial as it demonstrates the company's ability to meet its interest obligations from its operating income.
Peer comparison
Dec 31, 2023