MSA Safety (MSA)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	411,895	253,421	260,193	34,362	177,579
Interest expense	US$ in thousands	36,889	46,733	21,660	10,758	9,432
Interest coverage		11.17	5.42	12.01	3.19	18.83

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $411,895K ÷ $36,889K
= 11.17

Based on the provided data, MSA Safety's interest coverage ratio has fluctuated over the years. In December 2020, the interest coverage was strong at 18.83, indicating that the company's earnings before interest and taxes (EBIT) were 18.83 times higher than its interest expenses for that period.

However, by December 2021, the interest coverage ratio declined significantly to 3.19, suggesting that MSA Safety's ability to cover its interest payments had weakened. This could raise concerns about the company's ability to meet its financial obligations from its operating earnings alone.

The interest coverage ratio improved in December 2022 to 12.01, signaling that the company's earnings had increased sufficiently to cover its interest expenses. Yet, by December 2023, the ratio decreased to 5.42, indicating a slight weakening in the company's ability to cover its interest payments.

In the most recent period, December 2024, the interest coverage ratio stood at 11.17, showing a recovery from the lower ratio in the previous year. Overall, while fluctuations in the interest coverage ratio are normal, investors and creditors may closely monitor this metric to assess MSA Safety's financial health and ability to meet its debt obligations.