Mettler-Toledo International Inc (MTD)

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	1,051,090	1,125,980	992,603	787,359	718,805
Interest expense	US$ in thousands	77,366	55,392	43,242	38,616	37,411
Interest coverage		13.59	20.33	22.95	20.39	19.21

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $1,051,090K ÷ $77,366K
= 13.59

The interest coverage ratio of Mettler-Toledo International, Inc. has consistently remained healthy and stable over the past five years. The trend shows a gradual decline in the ratio from 23.00 in 2021 to 13.96 in 2023. Despite this decrease, the ratio has remained well above 1, indicating that the company's operating income continues to comfortably cover its interest expense.

A high interest coverage ratio, as seen in the historical data of Mettler-Toledo International, Inc., suggests that the company is capable of meeting its interest obligations without much strain. This is a positive sign for investors and creditors as it indicates financial stability and a lower risk of default due to interest payments.

Overall, the trend of the interest coverage ratio for Mettler-Toledo International, Inc. demonstrates sound financial management and suggests that the company has been effectively managing its debt levels relative to its operating performance in recent years.