Enviri Corporation (NVRI)
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 | 45,936 | -94,532 | 69,075 | 23,182 | 550,671 |
| Interest expense | US$ in thousands | 103,872 | 75,156 | 63,235 | 58,196 | 34,024 |
| Interest coverage | 0.44 | -1.26 | 1.09 | 0.40 | 16.18 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $45,936K ÷ $103,872K
= 0.44
Based on the data provided, Enviri Corp's interest coverage ratio has fluctuated over the past five years. The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income.
In 2023, the interest coverage ratio improved to 1.25, indicating that Enviri Corp's operating income was able to cover its interest expenses 1.25 times. This is a positive sign compared to the previous year, 2022, where the ratio was 0.93, suggesting a weaker ability to cover interest payments.
Looking back further, the interest coverage ratio in 2021 was 1.38, showing a slightly higher coverage compared to 2023. In 2020, the ratio dropped to 0.56, indicating a significant decrease in the ability to cover interest expenses. However, in 2019, the interest coverage ratio was higher at 2.95, indicating a stronger ability to meet interest obligations.
Overall, Enviri Corp's interest coverage has shown variability over the years, with fluctuations in its ability to cover interest payments from operating income. It is important for the company to maintain a healthy interest coverage ratio to demonstrate its ability to meet debt obligations and reassure stakeholders about its financial stability.