National Presto Industries Inc (NPK)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 35,033 | 26,930 | 30,029 | 56,196 |
| Interest expense | US$ in thousands | — | — | 8,173 | 2,430 | 3,792 |
| Interest coverage | — | — | 3.29 | 12.36 | 14.82 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $—K
= —
The interest coverage ratio of National Presto Industries Inc has shown a declining trend over the past few years, indicating a potential weakening in their ability to cover interest expenses with operating profits.
As of December 31, 2020, the interest coverage ratio stood at a healthy 14.82, suggesting that the company generated operating profits nearly 15 times in excess of its interest expenses. However, by December 31, 2023 and December 31, 2024, the data provided is not available, which may raise concerns about the company's financial transparency.
The significant drop in the interest coverage ratio to 3.29 as of December 31, 2022 indicates a substantial decrease in the company's ability to cover interest costs, potentially signaling financial strain or increased leverage. It is important for investors and analysts to monitor this trend closely to assess the company's financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2024