Ingevity Corp (NGVT)

Interest coverage

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 369,000 350,200 350,400 369,800 396,800 409,300 437,100 437,500 452,600 457,900 439,200 435,800 422,200 453,500 461,600 411,100 397,900 378,100 364,500 405,600
Interest expense (ttm) US$ in thousands 97,400 94,600 93,200 90,700 87,000 81,300 69,700 63,200 56,500 51,000 52,100 49,200 48,700 49,600 46,700 45,700 44,200 81,800 73,600 64,000
Interest coverage 3.79 3.70 3.76 4.08 4.56 5.03 6.27 6.92 8.01 8.98 8.43 8.86 8.67 9.14 9.88 9.00 9.00 4.62 4.95 6.34

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $369,000K ÷ $97,400K
= 3.79

The interest coverage ratio of Ingevity Corp, as indicated by the data provided, has shown some fluctuations over the periods from March 31, 2020, to December 31, 2024. The ratio started at 6.34 on March 31, 2020, indicating that the company's operating income was 6.34 times its interest expenses for that period.

Subsequently, the interest coverage ratio fluctuated, dropping to a low of 3.70 on September 30, 2024, which may suggest a decrease in the company's ability to cover its interest expenses from its operating income during that quarter.

Overall, the interest coverage ratio of Ingevity Corp has generally stayed above 1.0, which is considered the minimum acceptable level, indicating that the company has been able to meet its interest obligations using its operating income. However, a declining trend in the ratio should be monitored closely as it could indicate potential financial strain in the future.