National Presto Industries Inc (NPK)
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 | 35,033 | 22,127 | 30,029 | 56,196 | 46,380 |
| Interest expense | US$ in thousands | — | 8,173 | 2,430 | 3,792 | 7,606 |
| Interest coverage | — | 2.71 | 12.36 | 14.82 | 6.10 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $35,033K ÷ $—K
= —
The interest coverage ratio of National Presto Industries Inc has exhibited variability over the past five years, ranging from a high of 14.82 in 2020 to a low of 2.71 in 2022. This ratio indicates the company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio generally implies a lower financial risk for the company, as it suggests that the company has sufficient earnings to meet its interest obligations comfortably. The significant fluctuation in the interest coverage ratio over the years may reflect changes in the company's profitability, operational efficiency, and capital structure. It is crucial for investors and stakeholders to monitor this ratio closely to assess the company's financial health and debt repayment capacity.
Peer comparison
Dec 31, 2023