Myers Industries Inc (MYE)

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	72,405	70,824	72,018	78,493	83,941	77,669	69,589	62,841	49,301	43,407	44,730	41,117	53,550	57,500	52,420	50,346	37,266	35,493	1,594	4,523
Interest expense (ttm)	US$ in thousands	313	312	355	398	441	1,521	2,456	3,334	4,208	4,271	4,419	4,614	4,688	4,491	4,280	4,103	4,083	4,162	4,052	4,348
Interest coverage		231.33	227.00	202.87	197.22	190.34	51.06	28.33	18.85	11.72	10.16	10.12	8.91	11.42	12.80	12.25	12.27	9.13	8.53	0.39	1.04

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $72,405K ÷ $313K
= 231.33

The interest coverage ratio of Myers Industries Inc. has shown some fluctuations over the past eight quarters. The ratio ranged from a low of 10.66 in Q2 2023 to a high of 14.99 in Q2 2022. This ratio indicates the company's ability to meet its interest obligations with its operating income.

Overall, the interest coverage ratio has generally been healthy and above 1, indicating that Myers Industries Inc. is generating enough operating income to cover its interest expenses. The higher the ratio, the more easily a company can meet its interest payments.

However, the slight decrease in the interest coverage ratio in recent quarters may suggest a decrease in the company's ability to cover its interest expense. Investors and creditors may closely monitor this trend to assess the company's financial health and ability to service its debt obligations. Management should keep a close eye on maintaining a comfortable level of interest coverage to ensure financial stability and operational sustainability.