Mettler-Toledo International Inc (MTD)

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	1,051,094	1,140,702	1,159,634	1,146,439	1,125,984	1,024,812	993,821	965,187	935,733	907,139	862,880	786,894	720,727	749,452	713,492	712,753	718,805	717,321	707,528	695,341
Interest expense (ttm)	US$ in thousands	77,366	74,516	68,722	62,238	55,392	50,128	47,435	45,109	43,242	41,206	38,725	37,868	38,616	38,746	39,236	38,536	37,411	36,616	35,819	35,246
Interest coverage		13.59	15.31	16.87	18.42	20.33	20.44	20.95	21.40	21.64	22.01	22.28	20.78	18.66	19.34	18.18	18.50	19.21	19.59	19.75	19.73

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,051,094K ÷ $77,366K
= 13.59

The interest coverage ratio for Mettler-Toledo International, Inc. has shown a consistent and strong upward trend over the past eight quarters. The company's ability to cover its interest expense has improved steadily, indicating a healthy financial position. The ratio has increased from 20.33 in Q4 2022 to 13.96 in Q4 2023, demonstrating an improvement in the company's ability to meet its interest obligations. These positive trends suggest that the company's earnings before interest and taxes (EBIT) are increasing at a faster rate than its interest expenses, which is a favorable indicator of financial health and operational efficiency. Overall, the trend in Mettler-Toledo's interest coverage ratio reflects a strong ability to service its debt obligations and indicates a solid financial performance.