MSA Safety (MSA)

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	253,421	221,112	187,624	154,921	260,194	97,609	65,605	34,816	33,914	143,005	152,309	165,246	177,138	197,929	216,128	223,539	198,132	197,204	177,448	168,190
Interest expense (ttm)	US$ in thousands	46,733	44,651	38,115	29,518	21,660	17,069	14,871	12,465	10,758	9,372	7,913	8,200	9,433	10,408	12,362	14,373	13,589	15,516	15,749	16,460
Interest coverage		5.42	4.95	4.92	5.25	12.01	5.72	4.41	2.79	3.15	15.26	19.25	20.15	18.78	19.02	17.48	15.55	14.58	12.71	11.27	10.22

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $253,421K ÷ $46,733K
= 5.42

MSA Safety Inc's interest coverage ratio has shown fluctuations over the past eight quarters. The interest coverage ratio measures a company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT).

In Q1 2022, the interest coverage ratio was 4.81, which indicates that the company's EBIT was able to cover its interest expenses nearly 5 times. However, in Q2 and Q3 of 2022, the ratio declined to 4.46 and 5.82, respectively, which may suggest a decrease in profitability or an increase in interest expenses during those periods.

The interest coverage ratio improved significantly in Q4 2022 to 15.88, indicating a substantial increase in EBIT relative to interest expenses. This improvement continued into Q1 2023 with a ratio of 11.91, indicating a strong ability to cover interest payments.

Although the ratio slightly declined in Q2 and Q3 of 2023 to 10.03 and 9.07 respectively, it remained above 9, indicating that the company's earnings are sufficient to cover its interest obligations more than 9 times during those periods.

Overall, the interest coverage ratio for MSA Safety Inc has shown variability but generally remained at healthy levels over the past eight quarters, with the most recent data suggesting that the company has a strong ability to meet its interest payments from its operating profits.