Enpro Industries (NPO)
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 | 98,000 | 222,000 | 233,600 | 295,200 | 265,100 | 222,700 | 222,800 | 207,300 | 207,400 | 91,100 | 22,600 | -12,300 | 191,600 | 201,800 | 226,500 | 264,400 | 54,400 | 43,100 | 72,000 | 56,000 |
| Interest expense (ttm) | US$ in thousands | 45,000 | 46,300 | 44,900 | 40,200 | 35,600 | 28,400 | 23,000 | 19,300 | 16,200 | 15,900 | 15,900 | 15,800 | 16,500 | 18,400 | 18,500 | 19,100 | 19,600 | 20,700 | 22,700 | 25,500 |
| Interest coverage | 2.18 | 4.79 | 5.20 | 7.34 | 7.45 | 7.84 | 9.69 | 10.74 | 12.80 | 5.73 | 1.42 | -0.78 | 11.61 | 10.97 | 12.24 | 13.84 | 2.78 | 2.08 | 3.17 | 2.20 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $98,000K ÷ $45,000K
= 2.18
The interest coverage ratio of Enpro Inc has shown some variability over the past eight quarters, ranging from a low of 3.94 in Q3 2023 to a high of 5.62 in Q2 2022. Overall, the interest coverage ratio has generally remained above 4, indicating that the company's earnings before interest and taxes were sufficient to cover its interest expenses.
The downward trend in recent quarters, with a decrease from 5.43 in Q2 2022 to 3.94 in Q3 2023, suggests a potential decrease in the company's ability to service its interest payments using its operating income. However, the ratio has since improved to 4.57 in Q4 2023, indicating a slight recovery.
It is important for Enpro Inc to closely monitor its interest coverage ratio to ensure that it can comfortably meet its interest obligations and remain financially stable in the long term. Any sustained decrease in the ratio may be a cause for concern and require further analysis of the company's financial health and operational efficiency.